Bitcoin Surges Past $90K Amid Fed Shock and BlackRock ETF Boost

BlackRock’s IBIT Bitcoin ETF Sees Surge in Trading Limits Amid Rising Institutional Interest and Bitcoin Price Boom

  • Bitcoin Price surged above $90,000 after falling to $80,000 earlier this month.
  • Nasdaq International Securities Exchange (ISE) has proposed increasing the daily trading limit on options for BlackRock’s IBIT Bitcoin ETF from 250,000 to 1 million contracts.
  • If approved, BlackRock’s bitcoin ETF options would match trading limits of major equities and ETFs like Apple and NVIDIA.
  • JPMorgan filed for a leveraged product based on IBIT, signaling growing institutional interest.
  • The IBIT ETF, launched in January 2024, has become the fastest-growing ETF due to large inflows and rising bitcoin prices.

Bitcoin prices jumped above $90,000 after slipping to $80,000 earlier this month. This rise happened as investors prepared for potential Federal Reserve actions impacting the market. Meanwhile, the Nasdaq International Securities Exchange (ISE) submitted a filing to increase options trading capacity on BlackRock’s IBIT bitcoin spot ETF.

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The proposal requests raising the daily options contract limit from 250,000 to 1 million. This change would place IBIT alongside major products like Apple’s stock and the SPDR S&P 500 ETF. The filing states, “The proposed position limits and exercise limits for options on IBIT are consistent with existing position limits and exercise limits for options on iShares MSCI Emerging Markets, iShares China Large-Cap ETF and iShares MSCI EAFE ETF.”

Jeff Park, chief investment officer at ProCap BTC, noted on X (formerly Twitter), “At last, IBIT options is finally getting the treatment it deserves. Institutional volume is finally here.” The filing follows JPMorgan submitting for a leveraged product tied to IBIT, which would allow investors to bet on bitcoin’s future price and may prompt other Wall Street firms to develop similar derivatives.

Tim Sun, a senior researcher at Hashkey Group, told Bloomberg, “It is reasonable to expect more structured products to adopt IBIT as their underlying asset, which is a natural outcome of deeper institutional participation in bitcoin.” The IBIT ETF launched in January 2024 and has quickly grown due to strong inflows and a booming bitcoin price, becoming the fastest-growing ETF in history.

This development strengthens bitcoin’s position as a key macro asset integrated into the U.S. financial system. The increased trading limits reflect heightened institutional demand and growing market infrastructure supporting bitcoin investment.

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