Options would allow institutional investors to hedge risks and traders to amplify their buying power.
American stock exchange market Nasdaq is reportedly seeking the approval of United States regulators to launch options on a Bitcoin index.
On Aug. 27, the exchange operator announced that it wants to have index options on a Bitcoin index to give institutions and traders a different way to hedge their exposure to Bitcoin (BTC).
Bitwise chief investment officer Matt Hougan said in the report that it’s important to have options for BTC for the asset class to be fully normalized. The executive said there is a missing piece in the “liquidity picture,” which would be provided by exchange-traded fund (ETF) options.
