Nasdaq Seeks Approval for Bitcoin Index Options Trading

In a significant move for the cryptocurrency market, Nasdaq has announced its intention to seek regulatory approval for the launch and trading of options linked to the price of bitcoin (BTC). The exchange revealed this development on Tuesday, highlighting its commitment to integrating digital assets into traditional financial markets.

The proposed product, known as the Nasdaq Bitcoin Index Options (XBTX), is being developed in partnership with CF Benchmarks, a leading index provider. This innovative option will track the CME CF Bitcoin Real-Time Index, which is operated on the Chicago Mercantile Exchange. Nasdaq emphasized that this initiative would offer investors a new way to hedge their investments within the dynamic realm of digital assets.

Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq, commented on the collaboration, stating, “This partnership represents a fusion of the innovative crypto landscape with the established reliability of traditional securities markets. It marks a pivotal milestone in the ongoing evolution and maturation of the digital assets sector.”

Options trading is a crucial instrument for investors aiming to manage risk effectively. These financial instruments grant the buyer the right—though not the obligation—to purchase or sell an underlying asset at a predetermined price within a specified timeframe.

This announcement from Nasdaq follows a similar initiative earlier this year by the New York Stock Exchange (NYSE), which also expressed plans to introduce bitcoin index options. However, like Nasdaq, the NYSE is still awaiting approval from the Securities and Exchange Commission (SEC) for its proposed offerings.