Nasdaq (Nasdaq: NDAQ), in partnership with CF Benchmarks, announced its filing with the Securities and Exchange Commission to list and trade Nasdaq Bitcoin Index Options (XBTX). Upon regulatory approval, investors will be able to manage positions and hedge investments in cryptocurrency through options, furthering the maturity and liquidity of the asset class.
“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,” said Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq. “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.”
Pending regulatory approval, the index options will track the price of Bitcoin as represented by the CME CF Bitcoin Real-Time Index (BRTI). The product is intended to provide institutional and retail market participants access to an important risk management tool. The calculations powering the index are executed every second of every day by aggregating Bitcoin-USD order data from the leading cryptocurrency exchanges meeting the specific criteria.
XBTX will include European-style exercise and cash settlement provisions, with the final settlement value determined by the price of the CME CF Bitcoin Reference Rate – New York Variant (BRRNY) upon expiration, divided by a factor of one hundred (100). The BRRNY provides one set U.S. dollar price through a combination of data collected between 3:00 pm and 4:00 pm, providing a clear reference rate and essentially acting as a closing price in a market that is hallmarked by continuous global trading.
“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,” said Sui Chung, 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 supports the maturation of digital asset ecosystem with trusted technology and institutional adoption
Amidst the maturation of the digital asset ecosystem, prioritizing trust, transparency and investor protection is paramount. To further those aims Nasdaq also supports its clients in the digital asset ecosystem through a variety of solutions and offerings.
The first is through serving as a leading technology provider of Central Counterparties (CCPs) and Central Securities Depositories (CSDs), which are pivotal in shaping governance frameworks and market stability essential for attracting institutional investors and fostering standardization. Through its versatile, multi-asset solutions, Nasdaq empowers organizations with dependable and adaptable technology throughout the trade process, enabling them to enhance operational efficiency, promote transparency and boost liquidity while maintaining exceptional levels of resilience.
The second is through Exchange Traded Product (ETP) listings, working closely with asset managers and regulators to ensure successful launch and trading of Ethereum and Bitcoin ETPs. Nasdaq’s supports these digital assets products through market quality and liquidity programs that provide our clients with tight spreads and robust price discovery.
