Nasdaq PHLX Lifts Proposed IBIT Options Limit to 1 Million Contracts

Nasdaq PHLX has filed to raise the position and exercise limits for options on the iShares Bitcoin Trust ETF, ticker IBIT, from 250,000 contracts to 1,000,000 contracts on the same side of the market. The filing became effective on 18 May 2026 and lines PHLX up with a broader push by major options venues to expand capacity around one of the fastest-growing crypto-linked products in the US market.

In its SEC filing, the exchange argues that IBIT’s size and liquidity justify the higher ceiling. PHLX pointed to the fund’s roughly $52.6 billion market capitalisation and average daily share volume above 61 million as support for treating the product more like other large, liquid commodity-based ETF options.

For traders, this is a market-structure change rather than a retail product launch. Higher position limits mainly help larger hedgers, market makers, and institutional strategies operate with fewer artificial constraints. But retail traders can still feel the second-order effects if bigger limits support deeper liquidity and more competitive pricing in active expiries.

Why it matters

Position limits shape how much size can stay on-exchange. When limits are too low for a highly liquid product, more activity can get pushed into less transparent alternatives or fragmented across venues.

What to watch next

Watch whether other exchanges follow with matching limits and whether listed liquidity in IBIT options continues to build across longer expiries and larger block-style hedging activity.