The world's first electronic stock exchange is asking a leading U.S. securities regulator to approve options on the Bitcoin (BTC) index.
Nasdaq is seeking approval from the U.S. Securities and Exchange Commission (SEC) to list its Nasdaq Bitcoin Index Options (XBTX) product, according to a new report from Reuters.
The SEC has yet to approve options on any of the BTC exchange-traded funds (ETFs) launched in January. That includes an application from Nasdaq to trade options on the $21.3 billion BlackRock iShares Bitcoin Trust ETF.
Matt Hougan, chief investment officer at crypto exchange Bitwise, says:
“It is important that Bitcoin options are available to fully normalize this asset class.
We are missing out on part of the liquidity picture that ETF options could provide.”
Options are derivative contracts that give the holder the right to buy or sell an underlying asset at a specific price and time. They are intended to be a tool for traders seeking leverage and risk management.
According to the report, Bitcoin ETF options orders began pouring in after the SEC approved spot BTC ETFs in January 2024. However, several exchanges recently withdrew and resubmitted their orders in response to the SEC's comments.