SEC Makes Action on Nasdaq Bitcoin Index Options in the Wake of Increased ETFs

CryptoBreaking
BTC-1,77%

Nasdaq Proposal Scope

The application proposes an index option based on the performance of Bitcoin, increasing the regulated exposure to make it larger than the current futures and ETFs. In addition to the primary index product, Nasdaq has asked to list FLEX options based on BlackRock IBIT fund (NASDAQ: IBIT) and Bitcoin Premium Income ETF product range nationwide. As a result, the official process has been resumed on regular schedules, which shows that the agency has tried to stay in control and assess the elaborate crypto instruments with the current market regulation of listed exchanges and institutional trading requirements.

The demand of the Bitcoin related option remains high in all the US markets. Notably, BlackRock IBIT ETF-related options are ranked as some of the busiest contracts in the country, indicating how traders are increasingly relying on derivatives to acquire structured exposure to digital assets in regulated markets including the exchanges and the clearing. Furthermore, these contracts have become the only trailing of a few large equities, easily beating various commodity and technology linked products on the domestic trading platforms in the first quarter of this year alone.

The prices of Bitcoin continued to come under pressure as derivatives trading was increasing. Nevertheless, the volume of spot trading has decreased significantly over the last day, which means that traders are taking a cautious stance in their positions as institutional instruments associated with Bitcoin gain more and more momentum in the framework of more comprehensive risk management, by regulated investment firms. Moreover, the authorities are still evaluating the connection between crypto derivatives and the already established safeguards, disclosure rules, and surveillance systems to facilitate orderly trade across the US markets during times of increased market volatility and demand.

Derivatives Market Outlook

The decision by Nasdaq indicates long-term institutional demand to have regulated exposure to Bitcoin. Therefore, the result of the SEC examination can have an impact on the future structure of the crypto products by exchanges, including their participation by asset managers and solidifying regulatory requirements in emerging digital asset markets in the United States and other key jurisdictions.

This article was originally published as SEC Makes Action on Nasdaq Bitcoin Index Options in the Wake of Increased ETFs on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Bitcoin Tests Long-Term Holder Resilience Near Key Support Levels

Bitcoin is testing a crucial support level at $67,675, just $1,000 away, amidst a -44.8% drawdown. The outcome may dictate future price movements, with a potential correction to $54,000-$58,000 if breached. Historical patterns reveal Bitcoin's cyclical volatility.

BlockChainReporter15m ago

Crypto-rewards fintech company GoSats completes $5 million Series A funding, led by Konvoy

Gate News message: On April 7, the crypto rewards fintech company GoSats announced the completion of a $5 million Series A round of financing, led by Konvoy, with participation from Y Combinator, Taisu Ventures, and others. GoSats' business model links Bitcoin and gold rewards to everyday spending, helping businesses acquire customers and boost user loyalty. The funds from this round will be used to develop innovative fintech products and to build AI-powered personalized services.

GateNews17m ago

Bitcoin is negatively correlated with the global easing breadth index; this week, ETFs recorded their largest net inflow since February

The negative correlation between Bitcoin and global central bank monetary policy suggests that institutional capital has already positioned itself ahead of a potential easing cycle. In the recent spot ETF net inflows have hit a new high, but the market remains choppy and unstable, with weak demand. Corporate allocation has slowed, volatility in the options market has increased, and traders are more inclined to add downside protection.

GateNews35m ago

U.S.-listed company Hyperscale Data increases its Bitcoin holdings to 639.2135 BTC

Hyperscale Data announced that its Bitcoin holdings increased to 639.2135 BTC, with a total market value of approximately $44.1 million. Its subsidiary Sentinum holds 591.3761 BTC, ACG acquired 47.1935 BTC, and the overall asset value exceeds $100 million.

GateNews35m ago

Why Michael Saylor's bitcoin buys aren’t moving the needle anymore

Strategy (MSTR) purchased 4,871 BTC for $330 million, yet large buys often don't influence Bitcoin's market, with prices sometimes dropping. MSTR's impact is minimal compared to long-term holders and broader market dynamics, which show significant capital outflows.

CoinDesk39m ago

Peter Schiff: If Bitcoin falls to $10k by the end of 2026, it’s still the best-performing asset over the next decade

Gate News message, April 7, gold supporter Peter Schiff posted, saying that assuming Bitcoin drops to $10k by the end of 2026, it will still be the best-performing asset of the next decade. Schiff said he is sure Michael Saylor will rely on this to keep pushing up the price of Bitcoin and issue more shares to buy Bitcoin. But a 92% drop will make it the worst-performing investment for most long-term holders.

GateNews50m ago
Comment
0/400
No comments