Nasdaq Seeks SEC Approval for Bitcoin Index Options, Aims to Boost Crypto Market Maturity

Nasdaq, in collaboration with CF Benchmarks, has filed with the Securities and Exchange Commission (SEC) to list and trade the Nasdaq Bitcoin Index Options (XBTX). If approved, this new product will offer investors a sophisticated tool to manage and hedge their Bitcoin investments through options, which the Nasdaq said will further "the maturity and liquidity of the asset class."

JUST IN: ???????? Nasdaq is seeking SEC approval for #Bitcoin index options: Reuters pic.twitter.com/CT4WeljIbZ— Bitcoin Magazine (@BitcoinMagazine) August 27, 2024

“We are proud to partner with CF Benchmarks for the Nasdaq Bitcoin Index Options, providing market participants with trusted investment avenues for accessing the digital asset ecosystem,” stated Nasdaq's Vice President and Head of Exchange Business Management, Greg Ferrari. “This collaboration further combines the innovative crypto landscape with the resiliency and reliability of traditional securities markets and would mark a significant milestone for expanding the maturation of the digital assets market.”

The index options will track the CME CF Bitcoin Real-Time Index (BRTI) and will include European-style exercise and cash settlement provisions, with the final settlement value based on the CME CF Bitcoin Reference Rate - New York Variant (BRRNY), divided by a factor of one hundred upon expiration. This product is designed to cater to both institutional and retail market participants, providing access to a new risk management tool, the Nasdaq said.

“CF Benchmarks is delighted to partner with Nasdaq on the launch of options settling to the CME CF Bitcoin Reference Rate – New York Variant (BRRNY), the most liquid and widely recognised BTC price benchmark for the US market,” said Sui Chung, CEO of CF Benchmarks. “Spot options settling to BRRNY will build upon the hugely successful BTC futures and options contracts offered by CME. Together these regulated crypto derivatives will give investors the confidence to deploy more nuanced ways to gain exposure to the largest digital asset and will complement the spot ETFs that have already proved so popular with investors. As the cornerstone provider of regulated benchmarks for the asset class we are proud to bring more institutions to the market that will keep improving market liquidity.”

The Nasdaq said it is committed to advancing the Bitcoin and crypto ecosystem through trusted technology and fostering institutional adoption. As this ecosystem matures, Nasdaq emphasized the critical importance of trust, transparency, and investor protection. To support these principles, Nasdaq offers a variety of solutions, including Central Counterparties (CCPs), Central Securities Depositories (CSDs), and backing for Exchange Traded Product (ETP) listings. These offerings help enhance market stability, liquidity, and overall investor confidence in Bitcoin.