Tuesday, 02 January 2024 12:17 GMT

SEC Makes Action On Nasdaq Bitcoin Index Options In The Wake Of Increased Etfs


(MENAFN- Crypto Breaking) Nasdaq Proposal Scope

The application proposes an index option based on the performance of Bitcoin, increasing the regulated exposure to make it larger than the current futures and ETFs. In addition to the primary index product, Nasdaq has asked to list FLEX options based on BlackRock IBIT fund (NASDAQ: IBIT ) and Bitcoin Premium Income ETF product range nationwide. As a result, the official process has been resumed on regular schedules, which shows that the agency has tried to stay in control and assess the elaborate crypto instruments with the current market regulation of listed exchanges and institutional trading requirements.

The demand of the Bitcoin related option remains high in all the US markets. Notably, BlackRock IBIT ETF-related options are ranked as some of the busiest contracts in the country, indicating how traders are increasingly relying on derivatives to acquire structured exposure to digital assets in regulated markets including the exchanges and the clearing. Furthermore, these contracts have become the only trailing of a few large equities, easily beating various commodity and technology linked products on the domestic trading platforms in the first quarter of this year alone.

The prices of Bitcoin continued to come under pressure as derivatives trading was increasing. Nevertheless, the volume of spot trading has decreased significantly over the last day, which means that traders are taking a cautious stance in their positions as institutional instruments associated with Bitcoin gain more and more momentum in the framework of more comprehensive risk management, by regulated investment firms. Moreover, the authorities are still evaluating the connection between crypto derivatives and the already established safeguards, disclosure rules, and surveillance systems to facilitate orderly trade across the US markets during times of increased market volatility and demand.

Derivatives Market Outlook

The decision by Nasdaq indicates long-term institutional demand to have regulated exposure to Bitcoin. Therefore, the result of the SEC examination can have an impact on the future structure of the crypto products by exchanges, including their participation by asset managers and solidifying regulatory requirements in emerging digital asset markets in the United States and other key jurisdictions.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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