Since this year, Bitcoin spot ETFs and Ethereum spot ETFs have been launched one after another. According to data provided by SoSoValue, the assets under the US cryptocurrency spot ETFs have reached 64.8 billion. The market continues to look for the next cryptocurrency to enter the traditional financial field, but according to previous reports , there may not be a possibility of the next cryptocurrency spot ETF being listed in the short term.
However, Reuters revealed yesterday that the next one to join traditional finance may be Bitcoin index options. On Tuesday, the operator of the Nasdaq exchange revealed that it had sought regulatory approval for a Bitcoin index option. So far, the SEC has not approved any individual ETF options linked to the spot price of Bitcoin.
( Franklin Templeton plans to launch a crypto index ETF covering Bitcoin and Ethereum )
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ToggleBitwise says the market is lacking the liquidity provided by ETF options
The Bitcoin index option currently under consideration is a financial derivative that allows market participants to quickly and cheaply increase leverage on Bitcoin.
Bitcoin options are important for the asset class to fully normalize, said Matt Hougan of Bitwise: “Bitwise is one of the asset managers to bring a Bitcoin ETF to the market this year. What we are currently missing is the liquidity that ETF options can provide. "An option is a financial derivative that gives the holder the right to buy or sell an asset, such as a stock or exchange-traded product, at a predetermined price on a specific date. They provide traders with an inexpensive way to amplify their leverage, while institutional investors use them to hedge risk.
Nasdaq: Apply for Bitcoin options after approving Bitcoin spot ETF
Nasdaq said the Nasdaq Bitcoin Index Options will track the CME CF Bitcoin Live Index, which was developed by CF Benchmarks to track Bitcoin futures and options contracts on the Chicago Mercantile Exchange (CME). While waiting for regulators to approve or reject Bitcoin spot ETF options, traders have turned to other products, such as recently launched Bitcoin-linked leveraged ETFs and options on these funds.
When the Nasdaq exchange saw that the SEC approved the spot ETF in January, it immediately began applying for spot Bitcoin ETF options. But they have withdrawn and resubmitted those applications in recent weeks, according to people familiar with the matter.
