Nasdaq Seeks Approval to Trade Bitcoin Index Options on Exchange
Published Date: 5/30/2025
Notice
Summary
The SEC is deciding whether to let Nasdaq PHLX list and trade options based on the Nasdaq Bitcoin Index. This affects investors interested in bitcoin-related trading and could bring new ways to invest using cash-settled bitcoin options. The SEC is reviewing the proposal now and will decide soon, which could impact how and when these options become available.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Proposal to List Cash‑Settled Bitcoin Options
Nasdaq PHLX proposed to list and trade cash-settled, European-style options on the Nasdaq Bitcoin Index that reflect the price of spot bitcoin. The Exchange says these options would be used for hedging, asset valuation, and risk-shifting by investors, speculators, and multinational corporations.
Hedge Spot‑Bitcoin ETPs Under Same Margin Rules
The Exchange states that holders of spot bitcoin-based exchange traded products (ETPs) could carry the proposed Index options in the same account and subject to the same margin regime as the asset used for their long bitcoin exposure. That would let ETP holders hedge or modify exposure within a single regulatory account structure.
Regulatory Classification and Jurisdiction Uncertainty
The Commission is seeking comment on whether bitcoin is a foreign currency (the Exchange cites El Salvador’s 2021 law) and on whether the proposed Index options are foreign currency options (securities) or instead commodity options under Commodity Exchange Act jurisdiction. That classification could affect which regulator has exclusive jurisdiction and whether the options can be listed on a national securities exchange.
Payout Structure Uses BBRNY and $100 Multiplier
The proposed Index options would be cash-settled at expiration: holders would receive U.S. dollars equal to the difference between the CME CF Bitcoin Reference Rate—New York Variant (BBRNY) and the option strike price, multiplied by $100. The Exchange describes BBRNY as a once-a-day benchmark aggregating trade data from multiple bitcoin‑USD markets.
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