Nasdaq Seeks SEC Approval for Bitcoin Index Options

August 28, 2024 07:58 PM AEST | By Team Kalkine Media

Google News:

Nasdaq Seeks SEC Approval for Bitcoin Index Options — Image source: Shutterstock

Recent News

Why a Corporate Climate Strategy Is Essential for Future Business Succ...

FedEx Takes Delivery of Sustainable Aviation Fuel (SAF) From Neste at...

Canada to hit NATO defense target early, Carney says

Wolfe Research downgrades Equinix on valuation concerns after strong r...

The Nasdaq stock exchange is seeking approval from U.S. regulators to introduce options on a Bitcoin index, aiming to provide institutional investors with new methods to manage risk and offer traders enhanced power. On August 27, Nasdaq announced its intention to launch index options based on a Bitcoin index, which would allow institutions and traders to hedge their Bitcoin exposure more effectively.

Matt Hougan, Chief Investment Officer at Bitwise, highlighted the significance of {Bitcoin} (BTC) options in normalizing the asset class. According to Hougan, the introduction of exchange-traded fund (ETF) options would address a gap in the liquidity landscape for Bitcoin. The proposed Bitcoin Index Options will be linked to the CME CF Bitcoin Real-Time Index, developed by CF Benchmarks. This index tracks Bitcoin futures and options contracts traded on CME Group’s platform.

Currently, the U.S. Securities and Exchange Commission has not approved any options products tied to spot Bitcoin ETFs, including Nasdaq’s application to trade options on the iShares Bitcoin Trust (IBIT) ETF managed by BlackRock. This reflects ongoing regulatory deliberations in the cryptocurrency space.

In related news, BlackRock’s spot Bitcoin ETF experienced its largest daily net inflow in 35 days on August 26, with $224.1 million entering the fund. This influx suggests that market participants are capitalizing on recent price movements in Bitcoin. The combined daily net inflow for the ten U.S. spot Bitcoin ETFs reached $202.6 million, although funds from other issuers such as Bitwise, Fidelity, and VanEck saw a total net outflow of $32.1 million.

Additionally, crypto investment products have observed their largest weekly inflows in five weeks. From August 18 to 24, digital asset investment products saw a weekly net inflow of $533 million, according to data from CoinShares. This indicates a growing interest in digital assets despite the regulatory uncertainties surrounding Bitcoin-related financial instruments.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.