The popular Nasdaq stock exchange market has applied to the US SEC to enable Bitcoin index options as a new financial product for investors.
Leading reports from news dailies have confirmed that Nasdaq has applied for Bitcoin index options in the US. The stock exchange operator has applied to the US SEC and said it wants to have options on a Bitcoin index. The US SEC did approve a few spot Bitcoin ETFs this year and then spot Ethereum ETFs recently. However, their plans for this latest application are unclear.
Further, a representative from a crypto asset manager, Bitwise, said, “It’s important for options on Bitcoin to be available for this asset class to be fully normalized. We’re missing a part of the liquidity picture that ETF options would provide.”
In the last few months, the spot Bitcoin ETFs have actually been a catalyst for the market’s movements. Higher inflows into the ETFs have helped result in an uptrend, indicating a maturing market.
Meanwhile, on August 25, the spot Bitcoin ETFs recorded the highest inflows in over a month. Similarly, the IBIT ETF saw over $200 million in inflows alone on August 26.
One of the primary benefits of spot Bitcoin ETFs is their potential to attract a significant influx of institutional capital. These funds offer a more familiar and regulated investment vehicle compared to directly holding Bitcoin. It makes it easier for institutional investors to allocate funds to the crypto market. This increased institutional participation could lead to greater price stability, reduced volatility, and enhanced market liquidity.
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