Nasdaq (NASDAQ:NDAQ), in partnership with CF Benchmarks, today announced its filing with the Securities and Exchange Commission to list and trade Nasdaq Bitcoin Index Options (XBTX).
Upon regulatory approval, investors will be able to manage positions and hedge investments in cryptocurrency through options, furthering the maturity and liquidity of the asset class.
Pending regulatory approval, the index options will track the price of Bitcoin as represented by the CME CF Bitcoin Real-Time Index (BRTI). The product is intended to provide institutional and retail market participants access to an important risk management tool. The calculations powering the index are executed every second of every day by aggregating Bitcoin-USD order data from the leading cryptocurrency exchanges meeting the specific criteria.
XBTX will include European-style exercise and cash settlement provisions, with the final settlement value determined by the price of the CME CF Bitcoin Reference Rate – New York Variant (BRRNY) upon expiration, divided by a factor of one hundred (100). The BRRNY provides one set U.S. dollar price through a combination of data collected between 3:00 pm and 4:00 pm, providing a clear reference rate and essentially acting as a closing price in a market that is hallmarked by continuous global trading.