SEC approves Nasdaq's Bitcoin index options in landmark Wall Street move
The US Securities and Exchange Commission (SEC) has given the green light to Nasdaq’s plan to list Bitcoin index options on the Philadelphia Stock Exchange. Approval came on an accelerated basis, marking another step in Wall Street’s expanding involvement with Bitcoin-linked financial products. However, trading will not start immediately, as further regulatory steps remain. The newly approved options are tied to the Nasdaq Bitcoin Index, which tracks one one-hundredth of the CME CF BTC Real Time Index. These European-style contracts will be cash-settled, meaning no actual Bitcoin will exchange hands. Each contract has a minimum price movement of one cent, with a position limit set at 24,000 contracts per side—equivalent to around 0.12% of Bitcoin’s total circulating supply.
The SEC’s decision follows a dispute over jurisdiction. CME Group had argued that the contracts fell under the Commodity Futures Trading Commission’s (CFTC) exclusive authority. The SEC, however, maintained that oversight should be shared, citing concurrent jurisdiction over the product.
This approval reflects a wider push under SEC Chairman Paul Atkins to support innovation in the crypto sector. The regulator is also reviewing a potential exemption for tokenised trading of public company shares on decentralised crypto platforms.
Before trading can begin, the Philadelphia Stock Exchange must secure final approval from both the SEC and the CFTC. The process highlights the complex regulatory landscape surrounding Bitcoin-related financial instruments. The SEC’s move signals growing acceptance of crypto-linked products within traditional finance. Once both agencies grant full approval, the Philadelphia Stock Exchange will become the first to host these Bitcoin index options. The decision reinforces the trend of institutional engagement with digital assets while keeping strict oversight in place.
