Nasdaq Seeks SEC Approval For Bitcoin Index Options, Following NYSE's Lead

Stock exchange Nasdaq on Tuesday filed with the Securities and Exchange Commission (SEC) to list and trade Bitcoin BTC/USD Index Options (XBTX).

What Happened: This move comes as the exchange giant aims to expand its cryptocurrency offerings, following similar plans announced by its rival, the New York Stock Exchange (NYSE).

The proposed options would track the price of Bitcoin using the CME CF Bitcoin Real-Time Index (BRTI), with final settlement values determined by the CME CF Bitcoin Reference Rate – New York Variant (BRRNY).

If approved, these options could provide both institutional and retail investors with new tools for managing risk and exposure in the volatile cryptocurrency market.

Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq, stated that the product would “mark a significant milestone for expanding the maturation of the digital assets market.”

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However, it’s important to note that regulatory approval is still pending, and the SEC has been cautious in its approach to cryptocurrency-related financial products.

The move by Nasdaq reflects growing interest from traditional financial institutions in cryptocurrencies, despite ongoing market volatility and regulatory uncertainty.

It also highlights the increasing competition among major exchanges to capture market share in the evolving digital asset space.

While proponents argue that such products can increase market liquidity and accessibility, critics warn of potential risks associated with the largely unregulated nature of cryptocurrency markets.

What’s Next: As the financial industry continues to grapple with the integration of digital assets, developments like Nasdaq’s Bitcoin options proposal are likely to be key topics of discussion at upcoming events such as Benzinga’s Future of Digital Assets conference, scheduled for Nov. 19.

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