Nasdaq has proposed Bitcoin Index Options that would track the CME CF Bitcoin Real-Time Index, which monitors bitcoin futures and options contracts.

Pending regulatory approval, these options will enable investors to manage and hedge their cryptocurrency positions more effectively.

The XBTX options will feature European-style exercise and cash settlement, with the final value based on the CME CF Bitcoin Reference Rate – New York Variant (BRRNY).

This move reflects growing interest from traditional financial institutions in cryptocurrencies, despite ongoing market volatility and regulatory uncertainty.

Greg Ferrari, Nasdaq's Vice President, stated that this collaboration marks a significant milestone in the maturation of the digital assets market.

Matt Hougan, chief investment officer of Bitwise, emphasized that bitcoin options are crucial for normalizing the asset class and addressing liquidity gaps.

These cash-settled contracts are set to launch on September 30, with Bitcoin currently trading around $62,500.

The new BFF contract will allow exposure to one-50th of Bitcoin for approximately $1,200, with a margin requirement of around $300.

Regulatory approval from the SEC is still pending, as the agency has been cautious regarding cryptocurrency-related financial products.

Some U.S. lawmakers are advocating for the SEC to approve these investment offerings, expressing their support in a letter to the agency.

BlackRock's inflow contributed to a total joint net inflow of $202.6 million across 11 U.S. spot Bitcoin ETFs, indicating strong market interest.

As of August 20, open interest for CME Bitcoin futures contracts was nearing 30,000, signaling increasing popularity in the U.S. market.