SEC clears Nasdaq to list Bitcoin index options
The SEC has approved Nasdaq's proposal to list cash-settled Bitcoin index options, giving US equity traders direct exposure to Bitcoin price moves outside of existing spot ETF options.
The @SECGov has approved @Nasdaq's proposal to list index options based on the price of $BTC, the latest step in the growing integration of digital assets into traditional financial markets. The decision, announced on Friday, came five days before the May 27 statutory deadline set by regulators.
A New Instrument for US Equity Traders
The instruments will give US equity traders an alternative way to gain exposure to the price of Bitcoin, beyond existing options on products such as the iShares Bitcoin Trust ETF. Crucially, the new options are distinct from those already available on spot Bitcoin ETFs. Nasdaq Bitcoin Index options will be based on the CME CF Bitcoin Real Time Index divided by a factor of 100, and will be cash-settled with European-style exercise. That structure means traders receive a cash payment at settlement rather than taking delivery of the underlying asset or ETF shares, offering a cleaner route to pure Bitcoin price exposure through regulated US markets.
A Long Road to Approval
Nasdaq PHLX LLC filed the proposal with the SEC on September 23, 2025, seeking permission to list and trade Nasdaq Bitcoin Index options. The path to approval was not straightforward. On December 23, 2025, the Commission instituted proceedings to determine whether to approve or disapprove the proposed rule change. Those proceedings reflected SEC concerns around index integrity, wash trading, and surveillance-sharing arrangements with the underlying crypto exchanges. The Commission subsequently designated May 27, 2026, as the final deadline by which it would either approve or disapprove the proposal.
Friday's approval arrives as institutional demand for Bitcoin derivatives continues to build. The decision is seen as the latest sign that Wall Street is becoming more tightly integrated with the world of digital assets. For market participants, the addition of index-level options alongside spot ETF options deepens the toolkit available for hedging and speculation on Bitcoin price moves within fully regulated venues.
Sources:
Bloomberg: Nasdaq Wins SEC Approval to List Bitcoin Index Options
Federal Register: Nasdaq PHLX LLC Notice of Designation of Longer Period for Commission Action
SEC: Order Instituting Proceedings on Nasdaq Bitcoin Index Options (PDF)
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.