According to reports, American authorities are approving Nasdaq's request to provide options on a Bitcoin index.
In an effort to provide traders and institutions with an alternative method of hedging their exposure to Bitcoin, the exchange operator declared on August 27 that it intended to introduce index options based on a Bitcoin index.
In the paper, Bitwise Chief Investment Officer Matt Hougan stated that options for Bitcoin are necessary for the asset class to completely stabilize. The CEO said that exchange-traded fund (ETF) options will fill up a gap in the "liquidity picture."
With the use of options, traders may purchase or sell assets like as stocks, indices, and exchange-traded funds (ETFs) at a predetermined price on a certain date. This enables traders to increase their purchasing power and institutions to hedge risks.
The CME CF Bitcoin Real-Time Index, created by CF Benchmarks, would serve as the foundation for the suggested Bitcoin Index Options. The index monitors contracts for Bitcoin futures and options on the trading platform operated by CME Group.
No options investment products linked to the spot Bitcoin ETFs launched in January have yet to get approval from the US Securities and Exchange Commission. This includes asset manager BlackRock submitting an application to Nasdaq to trade options on the iShares Bitcoin Trust (IBIT) ETF.
The statement was made after the greatest daily net inflow in 35 days was observed in BlackRock's spot Bitcoin ETF. IBIT reported a net inflow of $224.1 million on August 26, which was the ETF's highest since July 22. The incident implies that investors are probably profiting from a brief decline in the price of bitcoin following a surge.
The 10 US spot Bitcoin ETFs had a combined daily net inflow of $202.6 million thanks to inflows from BlackRock's IBIT. The overall net outflow of funds from other issuers, including Bitwise, Fidelity, and VanEck, was $32.1 million.
Coin investment products, however, had the most inflows in the previous five weeks. Data released by investing business CoinShares shows that from August 18 to August 24, there was a $533 million weekly influx into digital asset investment products.
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