SEC Clears Nasdaq to List Cash-Settled Bitcoin Index Options on Phlx

The U.S. Securities and Exchange Commission (SEC) has cleared the way for Nasdaq to list cash-settled Bitcoin index options on the Philadelphia Stock Exchange, also known as Phlx. This approval marks an important development in expanding regulated access to digital asset derivatives.

According to regulatory documents, the contracts are European-style and can only be exercised at expiration. They are tied to the CME CF Bitcoin Real Time Index, which provides pricing data every 200 milliseconds from major cryptocurrency exchanges. The new Nasdaq contracts track one one-hundredth of this benchmark and will trade under the ticker QBTC on Phlx.

However, it's worth noting that even with SEC approval in hand, the contracts cannot begin trading immediately. This is because Bitcoin is classified as a commodity, which means the Commodity Futures Trading Commission (CFTC) has jurisdiction over it. The CFTC must grant exemptive relief before these types of contracts can go live.