Nasdaq to Launch Bitcoin Options

Nasdaq yesterday announced that it is seeking approval from regulators to launch and trade options linked to the price of Bitcoin.

The proposed Nasdaq Bitcoin Index Options (XBTX) would be developed in partnership with index provider CF Benchmarks, and would track the CME CF Bitcoin Real-Time Index operated on the Chicago Mercantile Exchange.

This would provide investors with a way to hedge their investments in the cryptocurrency, Nasdaq explained.

According to Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq, this collaboration between traditional securities markets and the innovative crypto landscape is a significant step towards the maturation of the digital assets market.

Options are a valuable tool for managing risk, as they give the buyer the right to buy or sell an asset at a predetermined price on a specified date.