Nasdaq Seeks SEC Approval for Bitcoin Index Options, Aims to Boost Crypto Market Maturity

Nasdaq, in collaboration with CF Benchmarks, has filed with the Securities and Change Fee (SEC) to checklist and commerce the Nasdaq Bitcoin Index Choices (XBTX). If authorised, this new product will supply buyers a classy instrument to handle and hedge their Bitcoin investments by means of choices, which the Nasdaq mentioned will additional “the maturity and liquidity of the asset class.”

JUST IN: 🇺🇸 Nasdaq is searching for SEC approval for #Bitcoin index choices: Reuters pic.twitter.com/CT4WeljIbZ

— Bitcoin Journal (@BitcoinMagazine) August 27, 2024

“We’re proud to accomplice with CF Benchmarks for the Nasdaq Bitcoin Index Choices, offering market members with trusted funding avenues for accessing the digital asset ecosystem,” acknowledged Nasdaq’s Vice President and Head of Change Enterprise Administration, Greg Ferrari. “This collaboration additional combines the revolutionary crypto panorama with the resiliency and reliability of conventional securities markets and would mark a big milestone for increasing the maturation of the digital belongings market.”

The index choices will observe the CME CF Bitcoin Actual-Time Index (BRTI) and will embody European-style train and money settlement provisions, with the ultimate settlement worth based mostly on the CME CF Bitcoin Reference Price – New York Variant (BRRNY), divided by an element of 100 upon expiration. This product is designed to cater to each institutional and retail market members, offering entry to a brand new threat administration instrument, the Nasdaq mentioned.

“CF Benchmarks is delighted to accomplice with Nasdaq on the launch of choices settling to the CME CF Bitcoin Reference Price – New York Variant (BRRNY), probably the most liquid and extensively recognised BTC value benchmark for the US market,” mentioned Sui Chung, CEO of CF Benchmarks. “Spot choices settling to BRRNY will construct upon the vastly profitable BTC futures and choices contracts provided by CME. Collectively these regulated crypto derivatives will give buyers the boldness to deploy extra nuanced methods to realize publicity to the biggest digital asset and can complement the spot ETFs which have already proved so well-liked with buyers. Because the cornerstone supplier of regulated benchmarks for the asset class we’re proud to convey extra establishments to the market that may maintain bettering market liquidity.”

The Nasdaq mentioned it’s dedicated to advancing the Bitcoin and crypto ecosystem by means of trusted know-how and fostering institutional adoption. As this ecosystem matures, Nasdaq emphasised the essential significance of belief, transparency, and investor safety. To help these ideas, Nasdaq affords a wide range of options, together with Central Counterparties (CCPs), Central Securities Depositories (CSDs), and backing for Change Traded Product (ETP) listings. These choices assist improve market stability, liquidity, and total investor confidence in Bitcoin.