Nasdaq is searching for approval for its plans to introduce and commerce choices primarily based on a bitcoin index, the alternate operator introduced on Tuesday.
In keeping with a Reuters report, the US Securities and Trade Fee (SEC) has but to greenlight choices linked to particular person exchange-traded funds (ETFs) which are tied to identify bitcoin costs, together with Nasdaq's personal choices providing utility. on BlackRock's $21.3 billion iShares Bitcoin Belief ETF.
These proposed index choices would supply institutional traders and merchants with an environment friendly, cost-effective methodology to realize or safe publicity to Bitcoin, the biggest cryptocurrency by market worth.
Choices are monetary devices that enable the holder to purchase or promote an asset, akin to a inventory or ETF, at a set worth earlier than a set date. They provide merchants an inexpensive method to leverage their positions, whereas institutional traders typically use them to mitigate threat.
Reuters explains that Nasdaq's proposed bitcoin index choices can be primarily based on the CME CF Bitcoin Actual-Time Index, which tracks CME Group exchange-traded bitcoin futures and choices, in accordance with the corporate.
Because the SEC continues to contemplate choices for brand new spot bitcoin ETFs, merchants are turning to various merchandise akin to newly launched leveraged bitcoin-linked ETFs and their respective choices.
Purposes for spot bitcoin choices ETFs have been filed as quickly because the SEC mentioned it will approve the underlying ETF in January. However the exchanges have since withdrawn and resubmitted these requests following suggestions from the SEC, in accordance with Reuters.
