In summary
- Nasdaq is seeking permission from federal regulators to offer Bitcoin spot ETF options, aiming to expand investors’ exposure to cryptocurrencies.
- Nasdaq Bitcoin Index Options (XBTX) would allow investors to manage positions and hedge Bitcoin investments through options.
- CF Benchmarks will manage the index that underpins XBTX, and the offering could boost crypto adoption.
Nasdaq is seeking permission from federal regulators to offer Bitcoin spot ETF options in a bid to expand investors’ exposure to cryptocurrencies.
Nasdaq Bitcoin Index Options (XBTX), filed with the U.S. Securities and Exchange Commission on Tuesday, would offer investors the ability to manage positions and hedge Bitcoin investments through options, according to Nasdaq. The offering could boost crypto adoption, the U.S.-based stock exchange noted.
CF Benchmarks will manage the index that supports XBTX.
“This collaboration further combines the innovative crypto landscape with the resilience and reliability of traditional securities markets and would mark a significant milestone in expanding the maturity of the digital asset market,” Greg Ferrari, Nasdaq Vice Chairman and Head of Exchange Business Management, said in a statement Tuesday.
Options are contracts that allow investors to trade a particular asset for a predetermined price at a fixed date in the future. Investors take advantage of options to hedge their investment risks.
Earlier this month, Nasdaq separately proposed offering options based on BlackRock’s Ethereum spot ETF.
Exchange-traded fund options that track the price of Bitcoin or Ethereum are not yet available in the US.
The SEC has postponed several applications by BlackRock and other institutional players to launch options-based spot Bitcoin ETFs since the funds received regulatory approval in January.
However, some US lawmakers are pushing federal regulators to approve investment offerings. In May, Axios reported that US Congressmen Mike Flood and Wiley Nickel sent a letter to the SEC pressuring the agency to approve options trading in Bitcoin-based funds.
Edited by Ryan Ozawa.
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