• Nasdaq is seeking approval to launch and trade bitcoin options.
  • This follows an announcement by the New York Stock Exchange earlier this year that is was also looking to list bitcoin index options.
  • Neither have yet received the green light from regulators.
As a seasoned researcher with a penchant for understanding the intricate workings of financial markets, I find this latest development between Nasdaq and bitcoin options particularly intriguing. Having witnessed the evolution of various digital assets over the years, it’s fascinating to see traditional exchanges like Nasdaq and NYSE embracing cryptocurrencies.Regulatory approval is being sought by Nasdaq for initiating Bitcoin (BTC) price-linked options, as the exchange announced on Tuesday.

The new Nasdaq Bitcoin Index Options (XBTX), collaborating with index provider CF Benchmarks, is designed to mirror the CME CF Bitcoin Real-Time Index traded on the Chicago Mercantile Exchange. This partnership aims to provide investors a means to protect their investments within the digital asset class, as stated by Nasdaq (NDAQ).

According to Greg Ferrari, Vice President of Exchange Business Management at Nasdaq, this partnership brings together the cutting-edge world of cryptocurrencies with the robustness and trustworthiness of conventional stock markets. This move could signify a major advancement in the development of the digital assets sector.

Investing involves managing risk, and options serve as valuable tools for this purpose. They grant their holder the privilege to either purchase or sell a specific asset at a predetermined price and on a specified date.

This action comes after the New York Stock Exchange disclosed their intentions to trade Bitcoin index options earlier in the year. At present, they are yet to receive approval from the Securities and Exchange Commission.

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2024-08-27 18:29