Nasdaq is searching for approval for plans to introduce and commerce choices based mostly on a Bitcoin index, the trade operator introduced on Tuesday.

The U.S. Securities and Change Fee (SEC) has but to approve choices linked to particular person exchange-traded funds (ETFs) that observe the spot value of bitcoin, together with Nasdaq's utility to supply choices on BlackRock's $21.3 billion iShares Bitcoin Belief ETF, Reuters reported.

These proposed index choices would provide institutional buyers and merchants a streamlined and cost-effective strategy to acquire or hedge publicity to Bitcoin, the most important cryptocurrency by market cap.

Choices are monetary devices that enable the holder to purchase or promote an asset, resembling a inventory or ETF, at a set value by a selected date. Whereas choices enable merchants to leverage their positions cheaply, institutional buyers typically use choices to scale back threat.

Reuters explains that Nasdaq’s proposed Bitcoin index choices could be based mostly on the CME CF Bitcoin Actual-Time Index, which tracks bitcoin futures and choices traded on the CME Group trade.

Whereas the SEC continues to deliberate choices on a brand new spot Bitcoin ETF, merchants are turning to different merchandise resembling newly launched leveraged ETFs linked to Bitcoin and their respective choices.

The purposes for the spot Bitcoin ETF choices had been submitted shortly after the SEC introduced it could approve the underlying ETF in January, however the trade subsequently withdrew and resubmitted these purposes following suggestions from the SEC, in accordance with Reuters.