The American stock exchange Nasdaq has filed for SEC approval to launch Bitcoin index options. This initiative will provide investors with new hedging opportunities related to Bitcoin exposure.
Approval Request
On August 27, Nasdaq announced its intention to offer index options on the Bitcoin index, providing institutional investors and traders with a new way to hedge their risks. Nasdaq's application is currently under review by U.S. regulators.
Proposed Options Features
The proposed Bitcoin Index Options will be based on the CME CF Bitcoin Real-Time Index (BRTI), developed by CF Benchmarks. This index tracks Bitcoin 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).
Growing Institutional Interest
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 Bitcoin price benchmarks. Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq, stated that the collaboration combines the innovative crypto landscape with the resilience of traditional securities markets. The announcement coincided with significant inflows into BlackRock’s Bitcoin ETF, highlighting investor interest.
Nasdaq's filing with the SEC emphasizes the exchange's commitment to advancing the Bitcoin ecosystem with a focus on trust, transparency, and investor protection.
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