Nasdaq has partnered with CF Benchmarks to create a new benchmark. filed The Securities and Exchange Commission has approved the listing and trading of the Nasdaq Bitcoin Index Options. If this product is approved, it will provide investors with a sophisticated way to hedge and manage their Bitcoin investments using options. This, according to Nasdaq, will allow them further leverage the Bitcoin market. “the maturity and liquidity of the asset class.”
JUST IN: 🇺🇸 Nasdaq is seeking SEC approval for #Bitcoin Reuters index options pic.twitter.com/CT4WeljIbZ
— Bitcoin Magazine (@BitcoinMagazine) August 27, 2024
“We are proud to partner with CF Benchmarks for the Nasdaq Bitcoin Index Options, providing market participants with trusted investment avenues for accessing the digital asset ecosystem,” stated Nasdaq’s Vice President and Head of Exchange Business Management, Greg Ferrari. “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.”
The index options will track the CME CF Bitcoin Real-Time Index (BRTI) and will include European-style exercise and cash settlement provisions, with the final settlement value based on the CME CF Bitcoin Reference Rate – New York Variant (BRRNY), divided by a factor of one hundred upon expiration. Nasdaq says that the product will be available to retail as well as institutional participants and provide a way to manage risk.
“CF Benchmarks is delighted to partner with Nasdaq on the launch of options settling to the CME CF Bitcoin Reference Rate – New York Variant (BRRNY), the most liquid and widely recognised BTC price benchmark for the US market,” Sui Chung is the CEO of CF Benchmarks. “Spot options settling to BRRNY will build upon the hugely successful BTC futures and options contracts offered by CME. Together these regulated crypto derivatives will give investors the confidence to deploy more nuanced ways to gain exposure to the largest digital asset and will complement the spot ETFs that have already proved so popular with investors. As the cornerstone provider of regulated benchmarks for the asset class we are proud to bring more institutions to the market that will keep improving market liquidity.”
Nasdaq stated that it was committed to the advancement of Bitcoin and cryptocurrency ecosystems through technology trusted by institutions and encouraging institutional adoption. Nasdaq stressed the importance of transparency, trust and investor protection as this ecosystem matures. Nasdaq supports these principles by offering a number of solutions including Central Counterparties(CCPs), Central Securities Depositories(CSDs), as well as backing for Exchange Traded product (ETPs) listings. These services help increase market stability and liquidity as well as overall investor trust in Bitcoin.
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Source: bitcoinmagazine.com
