The world’s first electronic stock exchange is asking the top US securities regulator to approve Bitcoin (BTC) index options.
According to a new report from Reuters, Nasdaq is seeking approval from the U.S. Securities and Exchanges Commission (SEC) to list a Nasdaq Bitcoin Index Options (XBTX) product.
The SEC has not yet approved options based 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.
Says chief investment officer of crypto exchange Bitwise, Matt Hougan,
“It’s important for options on bitcoin to be available for this asset class to be fully normalized.
We’re missing a part of the liquidity picture that ETF options would provide.”
Options are derivative contracts giving the holder the right to buy or sell an underlying asset at a certain price and timeframe. They aim to serve as a tool for traders seeking leverage and risk management.
According to the report, applications for Bitcoin ETF options began pouring in after the SEC approved spot BTC ETFs in January 2024. Recently, though, several exchanges have withdrawn and resubmitted their applications to address comments from the SEC.