2024-31771. Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Proposed Rule Change To Increase the Position and Exercise Limits for iShares Bitcoin Trust ETF

Market cap statistics	25k	50k	75k	100k-<250k	250k-<500k	500k-1mm	>1mm
# of observations	562	473	651	240	1934	27	10
average	1,038,795,162	2,957,127,045	4,466,049,699	5,390,836,360	26,286,624,063	67,390,777,100	717,540,906,097
median	360,130,143	889,627,570	1,445,831,231	1,643,123,279	3,535,963,213	27,063,940,966	90,047,209,478
min	2,204,436	4,211,156	3,830,532	5,090,230	1,616,094	2,762,394,749	11,786,645,969
max	36,120,249,097	70,846,805,916	174,820,296,591	106,971,594,180	3,573,884,443,220	733,972,714,698	3,358,647,600,000
IBIT % rank	100.00%	98.94%	98.77%	98.33%	88.57%	59.26%	20.00%

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90-Day ADV statistics	25k	50k	75k	100k-<250k	250k-<500k	500k-1mm	>1mm
# of observations	562	473	651	240	1934	27	10
average	76,586	213,419	425,542	623,888	3,510,784	5,930,607	44,610,385
median	67,231	206,402	409,177	625,882	1,620,931	4,724,248	18,017,607
min	4,791	10,084	18,191	105,713	16,276	1,207,242	1,771,544
max	244,499	564,451	989,341	1,339,553	88,351,060	22,397,311	271,230,790
IBIT % rank	100.00%	100.00%	100.00%	100.00%	99.43%	100.00%	80.00%

Based on the above table, if IBIT were compared to the 1,934 stocks that have position limits of 250,000 contracts to less than 500,000 contracts it would rank in the 88th percentile for market capitalization and the 99th percentile for ADV.

The Exchange also analyzed the position limits for IBIT by regressing the market capitalization figures and 90-day ADV of all non-ETF equities, against their respective position limit figures. From this regression, the Exchange was able to determine the implied coefficients to create a formulaic method for determining an appropriate position limit.^[21] In this case, the modeled position limit is 565,796 contracts.^[22] The results of the study are below.

Regression Statistics

Multiple R	0.496800597
R Square	0.246810833
Adjusted R Square	0.246361643
Standard Error	202227.4271
Observations	3905

ANOVA

	df	SS	MS	F
Regression	2	5.2304E+13	2.6152E+13	639.482566
Residual	3903	1.5962E+14	4.0896E+10
Total	3905	2.1192E+14
	Coefficients	Standard error	t Stat	P-value
Intercept	0	#N/A	#N/A	#N/A
Market Cap	0.0000002630	3.3371E-08	7.88130564	4.1699E-15
90-day ADV	0.0140402219	0.00055818	25.1533643	1.613E-129