Nasdaq Bitcoin Options Launch: Trade Crypto Without the Coins
Published Date: 2/24/2025
Notice
Summary
Nasdaq PHLX wants to start trading options based on the Nasdaq Bitcoin Index, which tracks Bitcoin’s price in real time. These options will be cash-settled and follow European-style rules, meaning they can only be exercised at expiration. This new product could open fresh ways for investors to bet on Bitcoin’s price, with the SEC now asking for public feedback before it goes live.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
New Bitcoin Index Options Listed
Nasdaq PHLX proposes to list a new option product with ticker XBTX called Nasdaq Bitcoin Index Options. These options are cash-settled, European-style (can only be exercised at expiration), and are based on the CME CF Bitcoin Real Time Index (BRTI).
Position Limits and Large-Position Reporting
Position limits for Nasdaq Bitcoin Index Options would be 250,000 contracts on the same side of the market, with no more than 150,000 near-term contracts. Any member or member organization holding more than 100,000 contracts on the same side must file a report with the Exchange (market makers are exempt).
Final Settlement Uses BRRNY--NOS
The final settlement value for these options will be the CME CF Bitcoin Reference Rate—New York Variant (BRRNY) on the option expiration date (usually a Friday). BRRNY will be divided by 100 to create the published settlement value BRRNY--NOS used for cash settlement.
Trading Hours for Bitcoin Options
Nasdaq Bitcoin Index Options would trade on the Exchange from 9:30 a.m. to 4:15 p.m. Eastern time, except on the last trading day when trading ends at 4:00 p.m. Eastern time. These hours match other index options on Phlx.
Pricing Increments and Strike Intervals
Nasdaq Bitcoin Index Options would be quoted and traded in U.S. dollars with a minimum price increment of $0.01 for all series. Strike price intervals of no less than $2.50 are generally permitted when the strike price is less than $200.
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