Key Takeaways
- Nasdaq seeks SEC approval for bitcoin index options.
- The proposed options will track the CME CF Bitcoin Real-Time Index.
- BlackRock's iShares Bitcoin Trust ETF, worth $21.3 billion, is included in Nasdaq's request.
Nasdaq has applied to the U.S. Securities and Exchange Commission (SEC) for approval to launch and trade options based on a bitcoin index.
The SEC has not yet approved options tied to spot bitcoin exchange-traded funds (ETFs), which debuted in January, including a Nasdaq application for options on BlackRock’s $21.3-billion iShares Bitcoin Trust ETF.
These proposed Nasdaq Bitcoin Index Options would offer institutional investors an affordable and efficient method to hedge their exposure to bitcoin. The options would track the CME CF Bitcoin Real-Time Index, a benchmark used for bitcoin futures and options on the CME Group exchange.
Matt Hougan, Chief Investment Officer of Bitwise, emphasized the significance of these options in further normalizing bitcoin as an asset class, noting:
We’re missing a part of the liquidity picture that ETF options would provide.
While the SEC reviews these applications, traders have turned to other bitcoin-related products, such as leveraged ETFs.
Applications for options on spot bitcoin ETFs have been resubmitted following recent SEC feedback.
