Nasdaq has filed with the U.S. Securities and Exchange Commission a request to list and trade Bitcoin Index Options.
According to a release, these options will track Bitcoin’s price represented by the CME CF Bitcoin Real-Time Index. These options are designed to increase transparency and reliability in the crypto market.
This initiative will allow investors to manage their crypto assets and hedge them .
Bitcoin Index Options
The CME CF Bitcoin reference rate — New York variant will determine the final settlement value. The options will be settled in cash and not Bitcoin.
This benchmark will provide a clear rate of reference that is tied to a particular time. This is crucial for a market such as crypto, which is characterized by global trading.
The Nasdaq Bitcoin Index Options, if approved, will provide institutional and retail investors with an alternative tool for risk management, in addition to existing futures and option contracts linked to Bitcoin.
The index options proposed are listed as an effective way to increase exposure to Bitcoin. This gives institutional investors and traders a method of hedging their exposure to Bitcoin.
In the same way, in early this year, SEC authorized spot Bitcoin trading, leading many large financial institutions file for their spot Bitcoin ETFs.
Nasdaq has partnered with CF Benchmarks in order to make this happen.
