SEC approves Nasdaq Bitcoin index options, pending CFTC

SEC approves Nasdaq to list cash-settled Bitcoin index options (QBTC), pending CFTC approval. This move expands regulated crypto derivatives and offers new hedging and trading tools for investors.

The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq’s request to list and trade cash-settled, European-style options on a Bitcoin price index, under the ticker QBTC. These options are tied to the Nasdaq Bitcoin Index, which tracks the CME CF Bitcoin Real Time Index, and are settled in U.S. dollars rather than physical Bitcoin. Each contract features a minimum trading increment of $0.01 and a position limit of 24,000 contracts per side, representing about 0.12% of Bitcoin’s circulating supply. Trading will commence once the Commodity Futures Trading Commission (CFTC) grants exemptive relief, as Bitcoin is classified as a commodity. This new product allows both institutional and retail investors to hedge or speculate on Bitcoin price movements, potentially offering a closer correlation to the underlying asset than ETF options. The approval marks a significant step in integrating crypto derivatives into traditional financial markets and underscores the growing trend toward regulated crypto-linked products in the U.S.