As reported by Watcherguru, Nasdaq has taken a significant step towards expanding the digital assets market by filing with the U.S. Securities and Exchange Commission (SEC) to list and trade Nasdaq Bitcoin Index Options (XBTX). If approved, these options would be the first cryptocurrency derivatives cleared by the U.S. Options Clearing Corporation (OCC).
In partnership with CF Benchmarks, Nasdaq aims to provide investors with a new way to manage and hedge their Bitcoin positions. Decrypt.co points out that this move could bolster the adoption of crypto assets and offer a more nuanced approach to gaining exposure to the world’s largest digital asset.
“This collaboration combines the innovative crypto landscape with the resiliency and reliability of traditional securities markets and would mark a significant milestone for expanding the maturation of the digital assets market,” Nasdaq Vice President and Head of Exchange Business Management Greg Ferrari said as reported by theblock.co.
The proposed options are European-style, meaning they can only be exercised at expiration. This feature offers traders a cost-effective way to leverage their purchasing power, while institutional investors can use it to manage and hedge risk.
Nasdaq’s filing marks a significant milestone in the maturation of the digital assets market, complementing existing futures and options contracts offered by the CME. By combining the innovative crypto landscape with traditional securities markets, Nasdaq seeks to address potential risks and challenges, such as market volatility and regulatory uncertainty.
Current Regulatory Status and Market Impact
Right now, you can’t trade Bitcoin options in the U.S. But Nasdaq wants to change that. They’ve filed with the SEC to offer a new way for investors to manage their bitcoin positions using options.
These options would track the price of Bitcoin through the CME CF Benchmarks Bitcoin Real-Time Index (BRTI). If approved, it could be a big deal for the crypto market. More people might start investing in and using digital assets.
Nasdaq’s move could give investors a more sophisticated way to gain exposure to Bitcoin. It’s the largest cryptocurrency out there, and this would provide another avenue for people to get involved.
Image credit: Wikimedia
