The iShares Bitcoin Trust (IBIT), managed by BlackRock, is climbing to the ranks of the U.S. “Magnificent 7” stocks after the Nasdaq International Securities Exchange filed with the U.S. Securities and Exchange Commission (SEC) to raise the Position Limit for IBIT options from 250,000 contracts to 1,000,000 contracts—a fourfold increase.
🚀 A Key Turning Point: From ETF Acceptance to Full-Blown Derivatives Market
This move is widely viewed as overwhelmingly positive news. Crypto writer Adam Livingston called it a “crucial turning point,” marking the transition from the phase of Spot Bitcoin ETF acceptance to a full-fledged Bitcoin Derivatives Market. Historically, every expansion of the derivatives market has been followed by significant upward surges in the Bitcoin price.
Nasdaq's justification for proposing such a massive increase is that IBIT’s market value, liquidity, and trading volume have grown to rival those of U.S. market giants like Apple, NVIDIA, and Microsoft in the “Magnificent 7” group. This confirms two key institutional perspectives:
Bitcoin is now being treated as a top-tier global asset.
The market no longer views Bitcoin as having liquidity issues.
📈 Benefits and Risks of Increased Leverage
Raising the IBIT options Position Limit offers several market benefits, including allowing institutions to perform Risk Management more efficiently, increasing market depth, narrowing spreads, and improving price efficiency. Furthermore, it paves the way for the growth of Bitcoin-collateralized financial instruments, such as new lending markets and structured products.
Jeff Park of ProCap BTC excitedly commented:
“IBIT Options are finally getting the attention they deserve. This is a real signal that institutional volume is truly entering the market.”
However, the increased leverage in the derivatives market is a double-edged sword that investors must watch closely, as it could lead to “sharper swings” in the Bitcoin price and increase short-term volatility.
🏦 Institutional Backing Reinforces Momentum
Regarding capital flows, the IBIT fund has recently returned to positive net inflows for two consecutive days, totaling $42.8 million USD, despite facing over $2 billion in outflows during the preceding two weeks.
Meanwhile, the banking giant JPMorgan recently launched a Structured Bitcoin Product based on the IBIT fund, set to mature in 2028, further boosting institutional participation in the Bitcoin market.
