The Nasdaq has recently proposed to the SEC options on a Bitcoin index, aiming to offer hedging tools to institutional investors and enhance the purchasing power of traders in the cryptocurrency market.
Let’s see all the details below.
Nasdaq and Bitcoin index options: will the SEC approve?
As anticipated, the Nasdaq has officially requested approval from the Securities and Exchange Commission (SEC) to launch options on a Bitcoin index, representing a significant step in the integration of criptovalute into traditional financial markets.
The proposed options would allow institutional investors to mitigate risks and traders to expand their purchasing power in the volatile cryptocurrency market.
According to what was reported, Nasdaq intends to base the new options on the CME CF Bitcoin Real-Time Index, developed by CF Benchmarks.
This index monitors the futures and option contracts on Bitcoin on the CME Group exchange platform, ensuring an accurate representation of the current value of Bitcoin.
Matt Hougan, chief investment officer of Bitwise, emphasized the importance of options dedicated to Bitcoin to normalize this asset class further.
He highlighted how options can bridge the gap in liquidity, improving accessibility and risk management for institutional investors.
Currently, the SEC has not yet approved investment instruments in options linked to spot Bitcoin ETFs, including a previous request from Nasdaq for options on the iShares Bitcoin Trust (IBIT) by BlackRock.
This reflects the complexities and regulatory challenges surrounding the integration of cryptocurrencies into mainstream financial markets.
The inflows of Bitcoin ETFs
In any case, the announcement from Nasdaq comes at a time of significant activity in the Bitcoin ETF sector.
Recently, the iShares Bitcoin Trust by BlackRock recorded a net inflow of 224.1 million dollars in a single day, marking significant investor interest after a period of declining Bitcoin prices.
These positive flows have contributed to further consolidating the position of Bitcoin ETFs in the traditional investment landscape.
On the contrary, other ETF producers such as Bitwise, Fidelity e VanEck have recorded net outflows, highlighting a different dynamic among issuers of financial products linked to cryptocurrencies.
Overall, investment flows into digital asset products have seen a significant increase, with a weekly inflow of 533 million dollars between August 18 and 24, according to data from CoinShares.
This indicates a growing interest and confidence of investors towards cryptocurrencies, despite the price variations and market uncertainties.
In conclusion, the introduction of options on a Bitcoin index by Nasdaq represents a bold step towards the expansion and regulation of digital financial markets.
While the SEC approval process is still ongoing, the cryptocurrency industry is closely watching the upcoming developments, anticipating potential global impacts on trading and risk management.
Bitcoin in stallo: analysis and forecasts of a possible growth
Bitcoin is currently in a consolidation phase, characterized by a certain skepticism among investors, after a period of high volatility and uncertainty.
This phase follows a cycle of corrections and consolidations, which historically has often preceded significant market movements. In moments like these, the price of Bitcoin tends to form a solid base, from which considerable growth could emerge.
The cryptocurrency analyst TechDev recently published an interesting analysis comparing the current behavior of Bitcoin with that of the Nasdaq in the past.
According to his analysis, there are remarkable parallels between the trend of Bitcoin and the historical performance of the Nasdaq, suggesting that the cryptocurrency market might be on the verge of starting a new phase of growth.
This comparison is particularly relevant if we consider the similarities in market structures and sentiments that emerge from the two charts.
Currently, the Bitcoin market is experiencing a phase of uncertainty, also fueled by the recent statements of Jerome Powell, chairman of the Federal Reserve.
Powell has suggested a possible change in monetary policy with an interest rate cut expected in September.
Although this news initially sparked some optimism, the market as a whole remains cautious, reflecting the complex dynamics at play.
Despite the prevailing uncertainty, some investors maintain a long-term bullish view on Bitcoin.
TechDev, in particular, highlighted how the current behavior of Bitcoin could be a prelude to a rise similar to that of the Nasdaq in 2014, when the index went from about 12 dollars to almost 70 dollars.
If Bitcoin were to follow a similar path, we could witness significant growth in the coming months, overcoming the current market concerns and aiming for new all-time highs.
