- Details of NASDAQ's Application
- Analysts' Views on Spot Bitcoin Options
- Market Position and Bitcoin Reaction
The crypto market received a major boost as NASDAQ announced its application with the Securities and Exchange Commission (SEC) for the launch of Nasdaq Bitcoin Index Options (XBTX).
Details of NASDAQ's Application
According to reports, this initiative was executed in partnership with CF Benchmarks, the creator of CME CF Bitcoin Real-Time Index (BRTI). The product is expected to trade on crypto exchanges and complement CME options linked to Bitcoin futures. Sui Chung, CEO of CF Benchmark, explained that these regulated derivatives would improve investor confidence and significantly contribute to the broad market's growth.
Analysts' Views on Spot Bitcoin Options
Bloomberg analyst James Seyffart reported that the filing and approval could occur in the fourth quarter of this year. The deadline for the SEC to make a decision is September 21.
Market Position and Bitcoin Reaction
Options are exchange-traded derivatives that enable holders to buy or sell an asset at a set price until a set date. The advantage is that traders capitalize on a low-cost opportunity to increase their buying power. For institutional investors, this could be an important hedge against inflation. While waiting for the SEC’s decision, investors have resorted to other products, such as Bitcoin-linked ETFs and options on those funds. According to Bitwise’s chief investment officer, Matt Hougan, the market is currently missing the liquidity picture that the options could provide.
Bitcoin (BTC) is expected to react positively to the potential SEC approval as investors await a stronger price-determining factor to force a bullish reversal. At the time of writing, BTC was trading at $59.9k after declining by 5% in the last 24 hours and 13% in the last 30 days. Bitcoin’s trading volume is currently up by 58%, with $44.5 billion changing hands.
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