BTC: Nasdaq files application for listing and trading of Bitcoin options
- Nasdaq has filed with the SEC to introduce Nasdaq Bitcoin Index Options (XBTX), offering investors new tools to manage and hedge their Bitcoin positions, in partnership with CF Benchmarks.
- These options will be of the European type, exercisable only on their expiration date, and will be indexed to the CME CF Bitcoin Real-Time Index (BRTI), offering optimized risk management for institutional investors interested in digital assets.
- If approved, these Bitcoin options would become the first crypto derivative products of their kind.
Nasdaqone of the world's largest stock exchanges, recently filed an application with of the United States Securities and Exchange Commission for the listing and trading of Bitcoin-indexed options.
If approved, this proposal would mark a crucial step in the evolution of digital assets by providing investors with new tools For manage and hedge their Bitcoin positions.
A strategic initiative in collaboration with CF Benchmarks
The proposal of the Nasdaqin partnership with CF Benchmarksaims to introduce the Nasdaq Bitcoin Index Options (XBTX) on the market. These options will be indexed to the CME CF Bitcoin Real-Time Index (BRTI), an index that reflects real-time movements in the price of Bitcoin against the US dollar, by aggregating data from major crypto exchanges.
This initiative reflects the growing interest in derivative products linked to cryptocurrencies and the desire of the Nasdaq to establish itself as a key player in the maturation of the digital assets market.
European-style options for optimized risk management
The product offered by the Nasdaq is distinguished by its specific characteristics: the options will be of the European type, which means that they cannot be exercised only on their expiration dateunlike American-style options, which can be exercised at any time before expiration. Cash settlement will be based on the CME CF Bitcoin Reference Rate New York Variant (BRRNY), calculated every second to reflect transaction data from Bitcoin exchanges.
THE optionsas derivative instruments, offer investors the opportunity to buy or sell an asset at a predetermined price within a specific time period, without having any obligation to do so. They are an efficient way for traders to leverage their purchasing power and allow institutional investors to Better manage risks associated with Bitcoin volatility.
A step towards stronger regulation and increased investor confidence
If this request is approved, these Bitcoin options will become the first crypto derivatives to be compensated by the US Options Clearing Corporation (OCC), a central player in clearing transactions on the American market. This strengthened regulation is likely to attract a greater number of institutional investorsoffering them more sophisticated ways to get exposure to Bitcoin while managing the associated risks.
Sui ChungCEO of CF Benchmarksalso stressed the importance of these options as a complement to the futures and options contracts already offered by the CME. He noted that these new regulated derivatives should give investors more confidence to use more nuanced investment strategies, particularly in conjunction with Bitcoin ETFswhich have already met with great success among investors.
BTC: Nasdaq files for listing and trading of Bitcoin options article appeared first on Coin Academy