BlackRock’s Bitcoin exchange-traded fund could grow larger as the SEC raises options contract limits for Bitcoin funds. The iShares Bitcoin Trust ETF is set to benefit the most, with $85.5 billion in assets, compared to the Fidelity Wise Origin Bitcoin Fund’s $21.35 billion.

The SEC’s decision to increase options limits on Bitcoin ETFs is expected to reduce Bitcoin’s volatility and increase spot demand. This change could lead to more aggressive options strategies, attracting new capital from institutional portfolios seeking balanced risks.

In a significant move, the SEC approved in-kind creation and redemption on crypto ETFs, allowing the exchange of shares for underlying crypto. This approval is a key feature that ETF issuers have longed for and will have significant impacts on market structure and investor access.

Read more at Cointelegraph: SEC Upping Bitcoin ETF Options Limits Will Boost IBIT: NYDIG