US SEC Delays Decision on BlackRock Bitcoin ETF Options, FLEX Trading Limits

Key Insights:

• US SEC has delayed approval on extending limits on BlackRock Bitcoin ETF (IBIT) options and FLEX trading.
• IBIT recorded inflows despite a total net outflow of $243 million in spot Bitcoin ETFs.
• Bitcoin price slips to $91,286 amid jitters on miner selloffs and geopolitical factors.

The US Securities and Exchange Commission (SEC) has delayed its decision on Nasdaq’s proposal to amend position and exercise limits for BlackRock Bitcoin ETF (IBIT) options and FLEX trading.

BTC price fell to $91K levels amid outflow from spot Bitcoin ETFs. However, BlackRock saw inflows of $229 million.

BlackRock Bitcoin ETF Options and FLEX Trading Faces Delay

The U.S. Securities and Exchange Commission (SEC) has delayed approval on extending limits on BlackRock Bitcoin ETF (IBIT) options and FLEX trading.

Nasdaq ISE proposed to significantly increase position and exercise limits for options on BlackRock’s iShares Bitcoin Trust ETF (IBIT).

The SEC has delayed its decision to February 24 to either approve, disapprove, or institute proceedings on the proposal. This extended the standard 45-day review period by an additional 45 days.

On November 13, the exchange filed the proposal, seeking to raise the current position and exercise limits for IBIT options from 250,000 contracts to 1,000,000 contracts.

This would align BlackRock Bitcoin ETF (IBIT) with the highest-tier limits applied to highly liquid ETFs, such as those tracking major indices or large-cap stocks.

The amendment removed an initial component that would have eliminated position limits for certain FLEX options on IBIT, focusing solely on the increase for standard options.

BlackRock Bitcoin ETF Sees Massive Inflows

U.S. spot Bitcoin exchange-traded funds (ETFs) have started the new year on a bullish note. They recorded over $1.16 billion in net inflows across the first two trading days.

Analysts attribute the rebound to seasonal effect portfolio rebalancing, tax-loss harvesting unwind from late 2025, and growing confidence in Bitcoin as a macro hedge.

Bloomberg ETF expert Eric Balchunas also noted that the pace could imply annualized inflows of up to $150 billion if sustained.

However, the US Spot Bitcoin ETF saw a total net outflow of $243 million on Tuesday, with only BlackRock’s IBIT ETF experiencing a net inflow.

BlackRock Bitcoin ETF saw $229 million in inflows. Whereas, Fidelity led the selling with $312 million in outflows, as per Farside Investors data.

Notably, Nasdaq ISE argued that the rapid growth of the BlackRock Bitcoin ETF in trading volume and open interest justifies the higher limits.

It added that the current cap restricts market makers and institutional investors from effective hedging. Also, position and exercise limits are designed to prevent excessive concentration that could manipulate the underlying market.

Bitcoin Price Tanks Below $91,500

BTC price tumbled almost 3% in the past 24 hours, with the price currently trading at $91,413. This happened as Riot sold $162 million in Bitcoin as the mining hash price dropped.

The 24-hour low and high were $91,286 and $94,249, respectively. Trading volume has jumped by 22% over the last 24 hours, indicating interest among traders.

Bitcoin price drop also came following President Donald Trump’s confirmation of considering using the US military to take control of Greenland. He cited national security concerns as reasons for it.

CoinGlass data revealed mixed sentiment in the derivatives market. At the time of writing, the total BTC futures open interest was down 0.60% to $61.57 billion in the last 24 hours.

The 4-hour BTC futures open interest on CME dropped 0.40% and climbed 0.08% on Binance. Upcoming macroeconomic events could further drag Bitcoin price lower.

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