SEC Clears Nasdaq to Launch Cash-Settled Bitcoin Index Options on Philadelphia Stock Exchange

Nasdaq has received approval from the U.S. Securities and Exchange Commission (SEC) to list cash-settled Bitcoin index options on the Philadelphia Stock Exchange under the ticker QBTC, FinanceFeeds reported. QBTC is a European-style options product tied to the Nasdaq Bitcoin Index. The index tracks one-hundredth of the CME CF Bitcoin Real-Time Index, with reference prices refreshed every 200 milliseconds. Because the contracts are cash-settled, positions are settled at expiration by paying the difference between the spot Bitcoin price and the strike price, with no physical delivery. The SEC set a minimum trading increment of $0.01 and a single-side position limit of 24,000 contracts, which equates to about 0.12% of Bitcoin's circulating supply. Trading will operate under a waiver from the Commodity Futures Trading Commission (CFTC).