SEC Approves Nasdaq Bitcoin Index Options, Expanding Regulated Crypto Derivatives Market

SEC Clears Nasdaq for Bitcoin Index Options Listing

The US Securities and Exchange Commission has approved a proposal allowing Nasdaq to list cash settled Bitcoin index options on the Philadelphia Stock Exchange (Phlx). The new contracts will trade under the ticker QBTC, marking another step toward regulated Bitcoin-linked derivatives in traditional markets.

The approval was granted on an accelerated basis and published on the SEC’s official website.

Cash-Settled European-Style Contracts Explained

The approved options are European style, cash-settled contracts, meaning traders receive the cash difference between the Bitcoin strike price and the spot price at expiration instead of receiving actual Bitcoin.

The contracts are tied to the Nasdaq Bitcoin Index, which tracks the CME CF Bitcoin Real Time Index—a benchmark updated every 200 milliseconds using data from major crypto exchanges.

Each contract has a minimum increment of $0.01, with position limits set at 24,000 contracts per side, equal to about 0.12% of Bitcoin’s total supply.

CFTC Approval Still Required Before Launch

Despite SEC approval, the contracts cannot begin trading until they also receive approval from the US Commodity Futures Trading Commission (CFTC). This is required because Bitcoin is classified as a commodity under CFTC oversight, creating a shared regulatory framework between the two agencies.

SEC Continues Shift Toward Crypto-Friendly Rules

Under SEC Chairman Paul Atkins, the agency has taken a more open stance toward digital assets, including dropping several enforcement cases against crypto firms and exploring new frameworks such as “innovation exemptions” for tokenized trading systems.