- Nasdaq seeks SEC approval for Bitcoin index options launch.
- Options based on CME CF Bitcoin Real-Time Index.
Nasdaq, a major American stock exchange operator, is seeking approval from U.S. regulators to launch options on a Bitcoin index. On August 27, Nasdaq announced its intention to offer index options on the Bitcoin index, providing institutions and traders with a new avenue to hedge their Bitcoin exposure.
The proposed Bitcoin Index Options will be based on the CME CF Bitcoin Real-Time Index (BRTI), developed by CF Benchmarks. This index tracks BTC futures and options contracts on CME Group’s platform. If approved, the options will include European-style exercise and cash settlement, with the final settlement value based on the CME CF Bitcoin Reference Rate – New York Variant (BRRNY). It is divided by a factor of one hundred upon expiration.
Matt Hougan, Chief Investment Officer at Bitwise, emphasized the importance of such options for the normalization of Bitcoin as an asset class. He noted that these options would fill a gap in the current liquidity landscape, further enhancing market maturity.
Growing Institutional Adoption
This move by Nasdaq aligns with the broader trend of institutional adoption of digital assets. The exchange has partnered with CF Benchmarks to ensure the reliability and accuracy of the Bitcoin price benchmarks. Nasdaq’s Vice President and Head of Exchange Business Management, Greg Ferrari, stated that the collaboration combines the innovative crypto landscape with the resilience of traditional securities markets.
The announcement coincides with significant inflows into BlackRock‘s spot Bitcoin ETF, IBIT, which recorded a $224.1 million net inflow on August 26—the largest in 35 days. This surge suggests investors are taking advantage of a slight dip in Bitcoin prices.
Community states that Nasdaq’s filing with the Securities and Exchange Commission (SEC) underscores its commitment to advancing the Bitcoin ecosystem. It is focused on trust, transparency, and investor protection.
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