SEC Approves Bitcoin Price Index Options for Nasdaq Exchange

The SEC has given Nasdaq the green light to list and trade options tied directly to a Bitcoin price index. This approval is significant as it allows for the trading of European-style, cash-settled options on the Nasdaq Bitcoin Index, which tracks the CME CF Bitcoin Real Time Index.

The Nasdaq Bitcoin Index pulls real-time Bitcoin valuations from major spot trading venues and settlement prices are determined by the CME CF Cryptocurrency Reference Rate, New York Variant. The options can only be exercised at expiration, not before, and are settled in US dollars with a minimum trading increment of $0.01.

This approval is not the first crypto-adjacent options product to receive clearance from the SEC. In September 2024, the agency cleared options on spot Bitcoin ETFs, including BlackRock's iShares Bitcoin Trust. However, index options cut out the middleman entirely, referencing Bitcoin's price as calculated by a widely trusted benchmark rate.