Nasdaq has filed with the U.S. Securities and Exchange Commission (SEC) to list and trade Bitcoin Index Options. The company aims to provide new tools for institutional and retail investors to manage cryptocurrency investments. The options, pending regulatory approval, will offer European-style exercise and cash settlement features.

Nasdaq Seeks to Launch Bitcoin Index Options

Nasdaq (Nasdaq: NDAQ) announced on Tuesday its filing with the U.S. Securities and Exchange Commission (SEC) to list and trade Nasdaq Bitcoin Index Options (XBTX). Nasdaq, a global technology company specializing in exchange and financial technology services, has partnered with CF Benchmarks, a leading regulated cryptocurrency index provider, to enhance the integration of digital assets into traditional financial markets.

The Nasdaq Bitcoin Index Options are designed to help institutional and retail investors manage their positions and hedge investments in the cryptocurrency markets. These options will track bitcoin prices using the CME CF Bitcoin Real-Time Index (BRTI), subject to regulatory approval. The product aims to enhance market maturity and liquidity by offering European-style exercise and cash settlement.

Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq, commented:

This collaboration further combines the innovative crypto landscape with the resiliency and reliability of traditional securities markets and would mark a significant milestone for expanding the maturation of the digital assets market.

XBTX will feature European-style exercise and cash settlement provisions. The final settlement value will be based on the price of the CME CF Bitcoin Reference Rate – New York Variant (BRRNY) at expiration, divided by a factor of 100.

Sui Chung, CEO of CF Benchmarks, opined: “Spot options settling to BRRNY will build upon the hugely successful BTC futures and options contracts offered by CME. Together these regulated crypto derivatives will give investors the confidence to deploy more nuanced ways to gain exposure to the largest digital asset and will complement the spot ETFs that have already proved so popular with investors. As the cornerstone provider of regulated benchmarks for the asset class we are proud to bring more institutions to the market that will keep improving market liquidity.”

Source : Bitcoin News - Aug 28, 2024