Nasdaq Seeks SEC Approval for Bitcoin Index Options as Institutional Interest in Crypto Grows
Nasdaq Seeks SEC Approval for Bitcoin Index Options as BlackRock’s Spot ETF Records $224M Inflow.
Key Takeaways:
- Nasdaq is seeking SEC approval to launch options on a Bitcoin index.
- The proposed options would be based on the CME CF Bitcoin Real-Time Index.
- BlackRock's spot Bitcoin ETF (IBIT) saw its largest daily net inflow in 35 days, totaling $224.1 million.
US stock exchange Nasdaq is seeking approval from the Securities and Exchange Commission (SEC) to launch options on a Bitcoin index.
This move comes as institutional interest in cryptocurrency continues to grow, with significant inflows recorded in Bitcoin exchange-traded funds (ETFs) and crypto investment products.
Nasdaq's Push for Bitcoin Index Options
The proposed Bitcoin Index Options would be based on the CME CF Bitcoin Real-Time Index, developed by CF Benchmarks.
This index tracks Bitcoin futures and options contracts on CME Group's exchange platform.
Greg Ferrari, Nasdaq's Vice President and Head of Exchange Business Management, stated:
“This collaboration further combines the innovative crypto landscape with the resiliency and reliability of traditional securities markets and would mark a significant milestone for expanding the maturation of the digital assets market.”
Options are financial contracts that give traders the right to buy or sell assets at a set price (strike price) by a specified date (expiration date).
It is worth noting that the SEC has not yet approved any options investment instruments till date.
Among these pending option filings include Nasdaq's application to trade options on the iShares Bitcoin Trust (IBIT) ETF by asset manager BlackRock.
Similarly, the New York Stock Exchange has been awaiting SEC approval to list Bitcoin index options since May, further highlighting the regulatory hurdles awaiting Nasdaq.
However, Matt Hougan, chief investment officer at Bitwise, emphasized the importance of having options for Bitcoin, stating that it's crucial for the asset class to be fully normalized.
He noted that the “liquidity picture ” needs a missing piece, which ETF options would provide.
Growing Institutional Interest in Bitcoin and Crypto Market Trends
As Nasdaq seeks approval for Bitcoin index options, other indicators point to growing institutional interest in the cryptocurrency market.
On August 26, BlackRock's spot Bitcoin ETF (IBIT) recorded a $224.1 million net inflow, its largest in 35 days.
This significant inflow suggests that investors are taking advantage of a small dip in Bitcoin's price, which has decreased by 6.3% in the last 24 hours to $58,938.
Furthermore, the U.S. spot Bitcoin ETFs saw a combined daily net inflow of $202.6 million, with IBIT leading the pack.
However, issuers like Bitwise, Fidelity, and VanEck experienced a total net outflow of $32.1 million.
The broader crypto investment landscape is showing signs of increased institutional participation amid these flows.
According to data from CoinShares, digital asset investment products saw their largest inflows in five weeks.
From August 18 to 24, these products recorded a weekly inflow of $533 million, indicating strong institutional interest in the broader crypto market.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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