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Cryptocurrency News Articles

Nasdaq Reportedly Asks SEC to Approve Bitcoin (BTC) Index Options

Aug 28, 2024 at 06:01 am

The world’s first electronic stock exchange is asking the top US securities regulator to approve Bitcoin (BTC) index options.

Nasdaq Reportedly Asks SEC to Approve Bitcoin (BTC) Index Options

Nasdaq is reportedly seeking approval from the U.S. Securities and Exchanges Commission (SEC) to launch Bitcoin (BTC) index options.

According to a new report from Reuters, the world’s first electronic stock exchange is asking the top US securities regulator to approve the new product, called the Nasdaq Bitcoin Index Options (XBTX).

The SEC has yet to approve options on any of the spot BTC exchange-traded funds (ETFs) that launched in January. This includes an application from Nasdaq to trade options on BlackRock’s $21.3 billion iShares Bitcoin Trust ETF.

“It’s important for options on bitcoin to be available for this asset class to be fully normalized,” said Matt Hougan, chief investment officer of crypto exchange Bitwise, in an interview with Axios.

“We’re missing a part of the liquidity picture that ETF options would provide.”

Options are derivative contracts that give the holder the right to buy or sell an underlying asset at a specified price and within a specified time frame. They can serve as a tool for traders seeking leverage and risk management.

Applications for Bitcoin ETF options began pouring in after the SEC approved spot BTC ETFs in January. However, several exchanges have since withdrawn and resubmitted their applications to address comments from the SEC.

Original source:dailyhodl

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