<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MTc5Mjk3ODQ5OTYzMTI4NDcx/nasdaq-reportedly-looking-into-bitcoin-futures-despite-bear-market.png” />
Nasdaq, in collaboration with CF Benchmarks, has filed with the Securities and Exchange Commission (SEC) to list and trade Nasdaq bitcoin Index Options (XBTX). If approved, this new product will offer investors a sophisticated tool to manage and hedge their bitcoin investments through options, which Nasdaq says will promote “the maturity and liquidity of the asset class.”
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BREAKING NEWS: Nasdaq seeks SEC approval for twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin Index Options: Reuters image.twitter.com/CT4WeljIbZ
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1828416283483713709?ref_src=twsrc%5Etfw”>August 27, 2024
“We are proud to partner with CF Benchmarks on Nasdaq bitcoin Index Options, offering market participants trusted investment pathways to access the digital asset ecosystem,” said Nasdaq Vice President and Head of Exchange Business Management Greg Ferrari. “This collaboration further combines the innovative cryptocurrency landscape with the resilience and reliability of traditional securities markets and would mark an important milestone in expanding the maturation of the digital asset market.”
Options on the index will track the CME CF bitcoin Real-Time Index (BRTI) and will include European-style cash settlement and exercise provisions, with the final settlement value based on the CME CF bitcoin Reference Rate – New York Variant (BRRNY), divided by a factor of one hundred at expiration. This product is designed to cater to both institutional and retail market participants, providing access to a new risk management tool, Nasdaq said.
“CF Benchmarks is thrilled to partner with Nasdaq on the launch of options that settle in the CME CF bitcoin Reference Rate – New York Variant (BRRNY), the most liquid and widely recognized btc reference price for the U.S. market,” said Sui Chung, CEO of CF Benchmarks. “The spot options that settle in BRRNY will build on the successful btc futures and options contracts offered by CME. Together, these regulated crypto derivatives will give investors the confidence to implement more nuanced ways to gain exposure to the largest digital asset and will complement the spot ETFs that have already proven so popular with investors. As a foundational provider of regulated benchmarks for the asset class, we are proud to bring more institutions to the market that will continue to enhance market liquidity.”
Nasdaq stated that it is committed to advancing the bitcoin and cryptocurrency ecosystem through trusted technology and by fostering institutional adoption. As this ecosystem matures, Nasdaq emphasized the critical importance of trust, transparency, and investor protection. To support these principles, Nasdaq offers a variety of solutions, including central counterparties (CCPs), central securities depositories (CSDs), and support for exchange-traded product (ETP) listings. These offerings help improve market stability, liquidity, and overall investor confidence in bitcoin.
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