Nasdaq Proposes Spot Bitcoin ETF Options to SEC for Approval
Nasdaq has requested approval from federal regulators to introduce spot Bitcoin ETF-based options, aiming to broaden investors’ exposure to cryptocurrency assets.
The proposed Nasdaq Bitcoin Index Options (XBTX) seeks to provide investors with the opportunity to manage positions and hedge Bitcoin investments through options, as disclosed by Nasdaq in a submission to the U.S. Securities and Exchange Commission. This move is anticipated to enhance the adoption of cryptocurrency assets, according to the U.S.-based stock exchange.
The index underlying XBTX will be overseen by CF Benchmarks.
Nasdaq’s Vice President and Head of Exchange Business Management, Greg Ferrari, expressed that this collaboration merges the innovative crypto space with the stability of traditional securities markets, marking a significant step in advancing the maturity of the digital assets market.
Options are contractual agreements that allow investors to trade a specific asset at a predetermined price on a specified future date, enabling them to mitigate investment risks effectively.
In a separate initiative earlier this month, Nasdaq proposed options based on BlackRock’s spot Ethereum ETF. Notably, options linked to exchange-traded funds tracking the prices of Bitcoin or Ethereum are currently unavailable in the United States.
The Securities and Exchange Commission (SEC) has deferred multiple requests from institutional players like BlackRock to launch options based on spot Bitcoin ETFs since these funds received regulatory approval in January.
Certain U.S. lawmakers are exerting pressure on federal regulators to approve such investment offerings. In a recent development, U.S. congressmen Mike Flood and Wiley Nickel reportedly sent a letter to the SEC urging the agency to greenlight options trading on Bitcoin-based funds.
The article was edited by Ryan Ozawa.
