Nasdaq seeks approval to launch Bitcoin choices

Nasdaq is in search of approval for its plans to introduce and commerce choices primarily based on a bitcoin index, the trade operator introduced on Tuesday.

Based on a report from Reuters, the U.S. Securities and Alternate Fee (SEC) has not but given the inexperienced gentle for choices linked to particular person exchange-traded funds (ETFs) which are tied to identify bitcoin costs, together with Nasdaq’s personal utility to supply choices on BlackRock’s $21.3 billion iShares Bitcoin Belief ETF.

These proposed index choices would supply institutional traders and merchants with a streamlined, cost-effective technique to realize or hedge publicity to bitcoin, the biggest cryptocurrency by market worth.

Choices are monetary devices that permit the holder to purchase or promote an asset, like a inventory or ETF, at a set worth earlier than a specified date. They provide merchants an affordable option to leverage their positions, whereas institutional traders typically use them to mitigate threat.

Reuters explains that Nasdaq’s proposed Bitcoin Index Choices could be primarily based on the CME CF Bitcoin Actual-Time Index, which tracks bitcoin futures and choices traded on the CME Group’s trade, in line with the corporate.

Whereas the SEC continues to deliberate on choices for the brand new spot bitcoin ETFs, merchants have been turning to different merchandise, resembling newly launched leveraged ETFs tied to bitcoin and their respective choices.

Purposes for spot bitcoin ETF choices had been submitted as quickly because the SEC indicated it could approve the underlying ETFs in January. Nonetheless, in line with Reuters, the exchanges have since withdrawn and resubmitted these functions following suggestions from the SEC.