The Securities and Exchange Commission has approved Nasdaq’s proposal to list cash-settled Bitcoin index options on the Philadelphia Stock Exchange.
The options are European-style contracts tied to the Nasdaq Bitcoin Index, which tracks one-hundredth of the CME CF Bitcoin Real Time Index. The contracts are cash-settled, meaning there is no physical Bitcoin involved and no risk of early assignment.
The contracts will trade under the ticker QBTC on Phlx, with a minimum increment of $0.01 and a position limit of 24,000 contracts per side, representing roughly 0.12% of Bitcoin’s outstanding supply.
Trading cannot begin until the Commodity Futures Trading Commission grants exemptive relief, as Bitcoin is classified as a commodity under CFTC jurisdiction.