Nasdaq Files for SEC Approval of Bitcoin Index Options

Nasdaq has filed a proposal with the Securities and Exchange Commission (SEC) to list and trade options on the Nasdaq Bitcoin Index (XBTX) in collaboration with CF Benchmarks. 

If approved, this offering would introduce a new tool for investors to manage and hedge their Bitcoin investments through options. Nasdaq noted that this product is expected to contribute to the development and liquidity of the Bitcoin market.

Greg Ferrari, Nasdaq’s Vice President and Head of Exchange Business Management, described the partnership with CF Benchmarks as a significant opportunity to offer market participants enhanced access to the digital asset space. 

The proposed options will track the CME CF Bitcoin Real-Time Index (BRTI) and will include European-style exercise and cash settlement features. 

The final settlement value would be based on the CME CF Bitcoin Reference Rate - New York Variant (BRRNY), adjusted by a factor of one hundred at expiration. 

This product is intended for both institutional and retail investors, offering an additional risk management tool.

Sui Chung, CEO of CF Benchmarks, commented that the options tied to the BRRNY would build on the existing CME BTC futures and options contracts. 

Chung noted that these regulated derivatives could provide investors with more sophisticated strategies for Bitcoin exposure, complementing existing spot ETFs and potentially increasing market liquidity.

Nasdaq also highlighted its ongoing efforts to support the Bitcoin and crypto ecosystem through the use of trusted technology and the promotion of institutional adoption. 

The company emphasized the importance of trust, transparency, and investor protection as the ecosystem continues to develop. 

To support these principles, Nasdaq offers a range of solutions, including Central Counterparties (CCPs), Central Securities Depositories (CSDs), and support for Exchange Traded Product (ETP) listings, aimed at enhancing market stability, liquidity, and investor confidence in Bitcoin.