2025-02941NoticeWallet

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.

Your PRIA Score

Score Hidden

Personalized for You

How does this regulation affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Key Dates

Published Date
2/24/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
Source: View HTML

Related Federal Register Documents

Previous / Next Documents

Back to Federal Register

Take It Personal

Get Your Personalized Policy View

Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in