SEC Approves Nasdaq’s Cash-Settled Bitcoin Index Options
- The SEC has approved Nasdaq to list European-style, cash-settled Bitcoin index options on the Philadelphia Stock Exchange under the ticker QBTC.
- These contracts are tied to the Nasdaq Bitcoin Index and update every 200 milliseconds using aggregated price data from major cryptocurrency exchanges.
- QBTC contracts eliminate custody and assignment risks, making them attractive for institutional trading desks seeking Bitcoin price exposure without holding spot assets.
- Position limits are set at 24,000 contracts per side, representing approximately 0.12% of Bitcoin‘s total supply, with a minimum price increment of $0.01.
- Trading cannot commence until the Commodity Futures Trading Commission (CFTC) grants exemptive relief due to Bitcoin‘s classification as a U.S. commodity.
The approval marks a significant step in expanding regulated instruments within the U.S. Bitcoin derivatives market, which already includes Cboe’s index options and CME Group’s futures-based options.
(Source)
