Nasdaq and CME Group bolster Bitcoin market with new trading options

Two salient fiscal institutions successful the US—Nasdaq and CME Group—have launched caller Bitcoin-related products arsenic organization adoption of the apical crypto continues.

According to an Aug. 27 announcement, Nasdaq has partnered with CF Benchmarks to record with the US Securities and Exchange Commission (SEC) to database and commercialized Nasdaq Bitcoin Index Options (XBTX).

XBTX

The XBTX options volition let investors to negociate and hedge their BTC positions. These options volition way the underlying plus done the CME CF Benchmarks Bitcoin Real-Time Index (BRTI).

XBTX volition diagnostic European-style workout and currency settlement. The last colony worth volition beryllium based connected the CME CF Bitcoin Reference Rate – New York Variant (BRRNY) terms astatine expiration, divided by 100.

Nasdaq vice president and caput of speech concern absorption Greg Ferrari highlighted that the concern merges the innovative crypto abstraction with the reliability of accepted securities markets. He emphasized that this determination would beryllium a cardinal milestone successful the digital assets market’s growth.

Sui Chung, CEO of CF Benchmarks, noted that these regulated crypto derivatives volition alteration investors to summation much nuanced vulnerability to Bitcoin, complementing the market’s popular spot exchange-traded funds (ETFs).

BFF

In a related development, CME Group, the world’s largest futures exchange, volition launch Bitcoin Friday futures (BFF) connected Sept. 30, 2024, targeting retail investors.

Each BFF declaration volition correspond one-50th of a BTC and connection a cost-effective and accessible mode to commercialized the apical integer asset. Based connected the CME CF Bitcoin Reference Rate New York Variant, these contracts expire each Friday astatine 4:00 P.M. ET.

Giovanni Vicioso, CME Group’s Global Head of crypto Products, explained that the play expiring, smaller-sized contracts volition let investors, from institutions to progressive retail traders, to fine-tune their bitcoin vulnerability connected a regulated exchange.

He added:

“By settling to the BRRNY, the benchmark utilized by starring spot bitcoin ETFs, traders volition besides payment from increasing liquidity and the quality to much efficiently seizure marketplace moves during US hours.”

CME has benefited from renewed institutional involvement successful Bitcoin and briefly surpassed Binance arsenic the world’s largest Bitcoin futures marketplace earlier this year.

The station Nasdaq and CME Group bolster Bitcoin marketplace with caller trading options appeared archetypal connected CryptoSlate.