The Securities and Exchange Commission (SEC) has granted approval for Nasdaq Inc. to list index options based on the price of Bitcoin. This decision allows US equities traders to explore new ways to bet on the price of cryptocurrency, beyond existing options tied to Bitcoin ETFs.
According to an order posted by the SEC, the derivatives were approved on an 'accelerated basis.' The new contracts will be cash-settled European-style options, meaning there is no risk of getting exercised if a position is in the money.
This development marks another step towards greater integration between Wall Street and digital assets. Regulated digital asset derivatives have been expanding access to investors in recent times, and this move is likely to attract more traders to the space.