Since this year, Bitcoin spot ETF and Ethereum spot ETF have been launched one after another. According to data provided by SoSoValue, the assets under the U.S. cryptocurrency spot ETF have reached 64.8 billion. The market continues to seek who is the next cryptocurrency to enter the traditional financial field of view, 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. The operator of the Nasdaq exchange on Tuesday revealed that it has sought regulatory approval for a Bitcoin index option, and so far the SEC has not approved any individual ETF options tied to the spot price of Bitcoin.
(Franklin Templeton plans to launch a crypto index ETF covering Bitcoin and Ethereum)
Bitwise says the market is lacking the liquidity that ETF options provide
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 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 the recently launched Bitcoin-linked leveraged ETFs and options on these funds.
When the Nasdaq exchange saw that the SEC had approved a 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 But they have withdrawn and resubmitted those applications in recent weeks, according to people familiar with the matter.
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