Crypto-linked exchange-traded funds [ETFs] are set to move deeper into traditional market infrastructure. This comes after NYSE Arca proposed rule changes to expand options trading on Bitcoin and Ethereum funds.

In a filing published by the U.S. Securities and Exchange Commission [SEC], it outlined updates that would align crypto ETF options with standard equity options frameworks, removing certain restrictions and enabling more flexible trading structures.

Position limits loosened for crypto ETF options

A key change involves removing the existing 25,000-contract position limit previously applied to several crypto ETF options.

Under the proposal, Bitcoin and Ethereum ETFs would instead follow broader position limit rules used across…