- Nasdaq is seeking SEC Bitcoin Index Options approval to introduce new trading opportunities linked to Bitcoin
- The proposed options would track the CME CF Bitcoin Real-Time Index, offering a strategic tool for institutional and retail investors
- Despite the SEC’s previous stance, this move could enhance Bitcoin trading strategies and risk management
Nasdaq resubmits application to the SEC for permission to list options on a bitcoin index.
This is supposed to provide more avenues for trading in Bitcoin and give a wider scope to investors and traders. While the SEC has yet to approve any options on Bitcoin-related ETFs, this Nasdaq proposal hopes to buck that trend.
Nasdaq has filed with the SEC, the regulator of the U. S. financial markets, to list and trade options on a Bitcoin index.
Will the SEC Approve?
The Securities and Exchange Commission has not yet allowed options based on any of the exchange-traded funds (ETFs) linked to Bitcoin spot prices that debuted in January, including Nasdaq’s attempt to trade options on BlackRock’s $21.3 billion iShares Bitcoin Trust ETF.
As all the financial advisors and private bankers in Italy know, options are listed derivatives that give the holder the right to buy or sell at a set price before a certain date an underlying asset(stock or etp). They are affordable enough for traders to use as leverage on their buying power, and institutional investors use them to hedge.
Index options on such bitcoin would finally give institutional investors and traders a vehicle to hedge their exposure against the world’s largest cryptocurrency.
The Nasdaq Bitcoin Index Options would be based on the CME CF Bitcoin Real-Time Index, the index created by CF Benchmarks to track the Bitcoin futures and options contracts listed on the CME Group’s exchange.
Conclusion
If the new Bitcoin index options proposed by Nasdaq get approved, that could really alter the way that Bitcoin is traded, and the way that risk is managed. We’ll see if the SEC allows it, but the proposal is a big leap toward some new frontiers in the cryptocurrency world
