According to a Bloomberg report, the SEC granted approval for Nasdaq PHLX to list cash-settled Bitcoin index options tied to the Nasdaq Bitcoin Index. The approval is being viewed as the first time a US national securities exchange has been cleared to trade options linked to a multi-exchange Bitcoin benchmark rather than a single spot Bitcoin ETF.
What exactly has been approved?
The SEC has approved Nasdaq PHLX’s proposal to list and trade cash-settled Bitcoin index options.
In simple terms, these are financial contracts that allow traders to bet on, hedge against, or manage exposure to Bitcoin price movements without directly owning Bitcoin.
Bloomberg reported that the product will give US equity market participants another regulated avenue to gain exposure to Bitcoin price movements beyond existing ETF-based options products.
How are Bitcoin options usually structured?
Currently, regulated Bitcoin-linked options in the US broadly fall into two categories:
- Bitcoin ETF options, which are linked to spot Bitcoin ETFs such as BlackRock’s iShares Bitcoin Trust (IBIT)
- Bitcoin futures options, which trade on CME Group and are tied to Bitcoin futures contracts
QBTC differs from both structures.
According to reports from CoinDesk and CryptoBriefing, the Nasdaq product is an index option tied to a broader Bitcoin price benchmark compiled using pricing data from multiple crypto exchanges rather than tracking a single ETF or futures contract.
What index does QBTC track?
The contracts are linked to the CME CF Bitcoin Real-Time Index (BRTI).
According to Bloomberg, the index aggregates Bitcoin pricing data from several cryptocurrency exchanges and updates approximately every 200 milliseconds.
The benchmark is designed to reflect broader market pricing instead of depending on the performance of one ETF product.
Why is this approval significant?
The approval could further integrate crypto-linked trading into traditional financial markets.
Bloomberg described the SEC’s decision as another sign of increasing convergence between Wall Street and digital assets.
For institutions, the structure may offer operational advantages. Some firms may face restrictions around directly holding Bitcoin or owning spot Bitcoin ETFs but may still be permitted to trade regulated cash-settled derivatives.
Nasdaq’s Head of US Options, David Barrett, said in a statement cited by Bloomberg that the approval represents “an important step in expanding regulated, transparent access to digital asset derivatives.”
What does “cash-settled” mean?
According to the SEC order and Bloomberg’s report, QBTC options will be cash-settled and European-style.
This means:
- Investors will not receive actual Bitcoin upon settlement
- Profits and losses will be settled in US dollars
- Contracts can only be exercised at expiry, not before
This structure resembles traditional index options traded in U.S. equity markets.
How is it different from CME Bitcoin options?
CoinDesk reported that each QBTC contract will represent exposure to one Bitcoin, significantly smaller than CME’s standard five-Bitcoin futures contract.
Analysts cited by crypto market publications said the smaller contract size could lower capital requirements and improve accessibility for smaller institutions and retail traders seeking exposure to Bitcoin volatility or hedging strategies.
Will trading begin immediately?
No.
Although the SEC has approved the proposal, the product still requires additional regulatory and operational clearances before launch.
According to the SEC order, the Commodity Futures Trading Commission (CFTC) must still provide the necessary exemptions because Bitcoin is classified as a commodity in the US.
CryptoBriefing and Phemex analysis noted that Nasdaq must also finalise contract specifications and secure approval from the Options Clearing Corporation (OCC).
Reports suggest the earliest possible launch timeline could be in the second half of 2026.
