The world’s first electronic stock exchange asks the top US securities regulator to approve Bitcoin (BTC) index options.
According to a new report from Reuters, Nasdaq is seeking approval from the U.S. Securities and Exchanges Commission (SEC) to launch a Nasdaq Bitcoin Index Options (XBTX) product.
The SEC has not yet approved any options based on the spot BTC exchange-traded funds (ETFs) launched in January. This includes an application from Nasdaq to trade options on BlackRock’s $21.3 billion iShares Bitcoin Trust ETF.
Says Chief Investment Officer of crypto exchange Bitwise, Matt Hougan,
“It is important that options on bitcoin are available so that this asset class can be fully normalized.
We are missing some of the liquidity picture that ETF options would provide.”
Options are derivative contracts that give the holder the right to buy or sell an underlying asset at a specified price and time frame. They are intended as a tool for traders looking for leverage and risk management.
According to the report, applications for Bitcoin ETF options started pouring in after the SEC approved spot BTC ETFs in January 2024. However, recently several exchanges have withdrawn and resubmitted their applications to respond to the SEC’s comments.
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Featured image: Shutterstock/Philipp Tur