The Securities and Exchange Commission (SEC) has given the green light for Nasdaq to list cash-settled Bitcoin index options on the Philadelphia Stock Exchange (Phlx). These are European-style contracts linked to the Nasdaq Bitcoin Index, which tracks one one-hundredth of the CME CF Bitcoin Real Time Index—an index that updates with price data from major cryptocurrency exchanges every 200 milliseconds.
Unlike traditional Bitcoin ETFs, these options do not involve physical Bitcoin. Instead, contract holders settle in cash based on the difference between the Bitcoin spot price and the strike price at expiration. This structure eliminates the risk of early assignment and offers investors an alternative way to trade Bitcoin price exposure without owning the underlying asset.
The new contracts will trade under the ticker QBTC on Phlx, with a minimum price increment of one cent and a position limit capped at 24,000 contracts per side. According to the SEC, this volume roughly corresponds to 0.12% of Bitcoin’s circulating supply, imposing a margin on how large positions can grow.
However, the options cannot commence trading until the Commodity Futures Trading Commission (CFTC) grants an exemptive relief. Because Bitcoin is classified as a commodity, the CFTC holds jurisdiction over its derivatives. While the SEC approved Nasdaq’s proposal on an accelerated basis, it acknowledged the CFTC’s authority in this area. The SEC also emphasized that under the Dodd-Frank Act, concurrent oversight of certain derivatives by both agencies is possible once the CFTC issues exemptions. This shared jurisdiction has precedents in other financial products such as mixed swaps and security futures.
The move marks a notable shift in regulatory approach. Under the leadership of the current chairman, the SEC has demonstrated a more crypto-friendly stance. Several enforcement actions against cryptocurrency firms initiated during the previous administration have been dropped, and the SEC has signaled openness toward new, clearer frameworks that balance innovation and investor protection. Among forthcoming developments, the SEC is reportedly working on an “innovation exemption” that could enable tokenized trading of public company shares on blockchain platforms without requiring issuer consent.