Nasdaq and CME Group are expanding Bitcoin trading options, aiming to attract more institutional investors to the cryptocurrency market.
Nasdaq, in collaboration with CF Benchmarks, has applied to the US Securities and Exchange Commission (SEC) to introduce Nasdaq Bitcoin Index Options (XBTX).
These options are designed to help investors manage their Bitcoin positions and hedge risks. They will be based on the CME CF Benchmarks Bitcoin Real-Time Index (BRTI) and settled in cash, with a European-style exercise method.
Nasdaq’s Greg Ferrari stated that this initiative integrates the innovation of the crypto world with the stability of traditional markets, marking a significant development for digital assets.
Meanwhile, CME Group will launch Bitcoin Friday Futures (BFF) on September 30, 2024.
Each BFF contract will represent one-50th of a Bitcoin, providing a more accessible and affordable way for investors to trade.
These contracts will expire weekly, every Friday at 4:00 PM ET, and are also based on the CME CF Bitcoin Reference Rate New York Variant.
Giovanni Vicioso from CME Group noted that these smaller, weekly contracts would cater to both institutional and retail traders, enhancing their ability to adjust Bitcoin exposure efficiently.
He added that aligning with the BRRNY benchmark will support increased liquidity and market responsiveness.
CME Group’s move follows a period of heightened institutional interest in Bitcoin, briefly surpassing Binance as the largest Bitcoin futures market earlier this year.
