TL;DR
- Nasdaq has requested SEC approval to launch options based on a Bitcoin index.
- Index options would allow investors to hedge risks and extend their buying power. Being seen as a crucial step for the normalization of the BTC market.
- BlackRock’s ETF has seen net inflows of $224.1 million.
Nasdaq has formally requested approval from the U.S. Securities and Exchange Commission (SEC) to introduce options based on a Bitcoin (BTC) index. The goal is to provide institutional investors and traders with a new tool to manage and amplify their exposure to BTC.
The proposal focuses on a product based on the CF Benchmarks Bitcoin Real-Time Index, which tracks BTC futures and options contracts on the CME Group platform.
BTC index options would allow investors to hedge risks and extend their buying power, offering an alternative to Bitcoin ETFs. This move is considered crucial for the normalization of the Bitcoin market, according to Matt Hougan, Chief Investment Officer at Bitwise, who highlighted the need for options to complete the BTC liquidity picture.
So far, the SEC has not approved options related to spot Bitcoin ETFs launched in January. Among these requests is Nasdaq’s application to trade options on BlackRock’s iShares Bitcoin Trust ETF, which is valued at $21.3 billion. The lack of approval for these investment instruments is a setback for those seeking more coverage and exposure options.
BlackRock Reaps the Benefits of Bitcoin
On the other hand, BlackRock’s spot Bitcoin ETF experienced a net inflow of $224.1 million on August 26, the largest since July 22. This capital inflow is a result of the recent downtrend faced by BTC. Investors seized the opportunity to enter the market at reduced costs. Despite this trend, other issuers like Bitwise, Fidelity, and VanEck have seen total net outflows of $32.1 million.
Additionally, crypto investment products have recorded the highest inflows in five weeks. With a total of $533 million in weekly inflows from August 18 to August 24, according to CoinShares data. The surge in inflows is attributed to renewed interest in crypto products.
