Nasdaq and CME Group Launch New Bitcoin-Related Products as Institutional Adoption of the Top Crypto Continues

Two prominent financial institutions in the US—Nasdaq and CME Group—have launched new Bitcoin-related products as institutional adoption of the top crypto continues.

Two major financial institutions in the United States — Nasdaq and CME Group — are launching new Bitcoin-related products amid increasing institutional adoption of the top cryptocurrency.

Nasdaq is partnering with CF Benchmarks to file with the U.S. Securities and Exchange Commission (SEC) to list and trade Nasdaq Bitcoin Index Options (XBTX), according to an Aug. 27 announcement.

The XBTX options will enable investors to manage and hedge their BTC positions. These options will track the underlying asset through the CME CF Benchmarks Bitcoin Real-Time Index (BRTI).

XBTX will feature European-style exercise and cash settlement. The final settlement value will be determined by the CME CF Bitcoin Reference Rate – New York Variant (BRRNY) price at expiration, divided by 100.

Nasdaq vice president and head of exchange business management Greg Ferrari highlighted that the partnership merges the innovative crypto space with the reliability of traditional securities markets. He emphasized that this move would be a key milestone in the digital assets market's growth.

“This partnership combines the innovative spirit and boundless energy of the digital asset space with the rigor, reliability, and trust of Nasdaq and traditional securities markets, marking a key milestone in the growth of the digital assets market,” said Ferrari.

Sui Chung, CEO of CF Benchmarks, noted that these regulated crypto derivatives will enable investors to gain more nuanced exposure to Bitcoin, complementing the market’s popular spot exchange-traded funds (ETFs).

“These regulated crypto derivatives will enable investors to gain more nuanced exposure to bitcoin, complementing the market’s popular physical bitcoin spot exchange-traded funds (ETFs)“said Chung.

In a related development, CME Group, the world's largest futures exchange, will launch Bitcoin Friday futures (BFF) on Sept. 30, 2024, targeting retail investors, according to a statement.

Each BFF contract will represent one-50th of a BTC and offer a cost-effective and accessible way to trade the top digital asset. Based on the CME CF Bitcoin Reference Rate New York Variant, these contracts expire every Friday at 4:00 P.M. ET.

Giovanni Vicioso, CME Group’s Global Head of crypto Products, explained that the weekly expiring, smaller-sized contracts will allow investors, from institutions to active retail traders, to fine-tune their bitcoin exposure on a regulated exchange.

“The smaller-sized, weekly expiring contracts will allow investors, ranging from institutions to active retail traders, to fine-tune their bitcoin exposure on a regulated exchange,” said Vicioso.

“By settling to the BRRNY, the benchmark used by leading spot bitcoin ETFs, traders will also benefit from growing liquidity and the ability to more efficiently capture market moves during U.S. hours,” he added.

CME has benefited from renewed institutional interest in Bitcoin and briefly surpassed Binance as the world’s largest Bitcoin futures market earlier this year.

Mentioned in this articleOluwapelumi AdejumoOluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Assad JafriAJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

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