Nasdaq is seeking approval for its plans to introduce and trade options based on a bitcoin index, the exchange operator announced on Tuesday.
According to a report from Reuters, the U.S. Securities and Exchange Commission (SEC) has not yet given the green light for options linked to individual exchange-traded funds (ETFs) that are tied to spot bitcoin prices, including Nasdaq‘s own application to offer options on BlackRock’s $21.3 billion iShares Bitcoin Trust ETF.
These proposed index options would provide institutional investors and traders with a streamlined, cost-effective method to gain or hedge exposure to bitcoin, the largest cryptocurrency by market value.
Options are financial instruments that allow the holder to buy or sell an asset, like a stock or ETF, at a set price before a specified date. They offer traders an inexpensive way to leverage their positions,…
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