Nasdaq Bitcoin Index Options

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Nasdaq Bitcoin Index Options

Nasdaq Looking For Approval Of Bitcoin Index Options

Nasdaq is looking to get approval from the SEC so that it can launch the Bitcoin index options. This was revealed by Nasdaq on Tuesday and highlights that Bitcoin is slowly making its way into traditional financial markets.

The SEC has yet to approve the Bitcoin index options, but if we look back, the SEC has approved Bitcoin-based ETFs. So, if the ETFs got the green light from the SEC, there's a good chance they will approve the Bitcoin index options as well.

Sec Approval Awaited By Nasdaq

The index options proposed by Nasdaq will be in the form of a derivative. According to experts, this will offer an inexpensive and quick way to trade Bitcoin.

The index option will also supposedly allow institutional investors to get exposure to Bitcoin, the largest cryptocurrency in the world.

According to Bitwise, the availability of Bitcoin options will be a big step forward towards the normalization of Bitcoin as an asset class. They added that it will also inject more liquidity into the market.

Options are a type of derivates that can be used to buy/sell an asset at a fixed price along with a set date. This allows institutional investors to hedge their risk while allowing traders to increase their purchasing power. The Bitcoin index options proposed by Nasdaq will be based on the Bitcoin Real-Time index from CME Group.

While the SEC has yet to green-light the Bitcoin index options, traders are now moving towards other available products, such as the Bitcoin ETFs, to get exposure.

Given the SEC's history of already approving the ETFs based on Bitcoin, the chances of approval of these index options is also really high. If this materializes, it will mean more liquidity and a higher market capitalization of Bitcoin.

At the same time, it will also help the entire crypto market to move towards legitimization and acceptance from the regulatory bodies.

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