Nasdaq has announced its intention to introduce options linked to Bitcoin (BTC) prices, pending regulatory approval. The exchange unveiled its proposal for the Nasdaq Bitcoin Index Options (XBTX) in a statement on Tuesday. This new offering will be developed in collaboration with index provider CF Benchmarks and will track the CME CF Bitcoin Real-Time Index managed by the Chicago Mercantile Exchange. Nasdaq (NDAQ) believes that these options will enhance investors’ ability to hedge their positions in the cryptocurrency market.
Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq, highlighted the significance of this initiative: “This collaboration further 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.”
Options are crucial for investors seeking to manage risk, as they provide the right to buy or sell an asset at a predetermined price on a specified date.
This development comes in response to a recent announcement by the New York Stock Exchange, which revealed plans to list bitcoin index options. The NYSE is also awaiting approval from the Securities and Exchange Commission for its proposal
