Pending CFTC approval, the new options aim to improve crypto risk management.
By Omkar GodboleUpdated May 25, 2026, 1:45 p.m. Published May 25, 2026, 5:56 a.m. 2 min readMake preferred on Nasdaq is preparing to offer bitcoin options. (CoinDesk Archives)Key Details:
- The SEC has conditionally allowed Nasdaq PHLX to list cash-settled, European-style bitcoin index options under the ticker QBTC, which are still awaiting CFTC approval.
- These QBTC options will be settled in U.S. dollars, linked to the CME CF Bitcoin Real Time Index, and traded on the same platform as major equities, enabling investors to utilize their existing brokerage accounts without the need for separate derivatives trading setups.
- Each QBTC contract provides exposure to 1 bitcoin, which is significantly smaller than the 5-bitcoin contracts offered by CME, making it easier for smaller institutions and retail investors to engage in hedging and volatility trading.
Nasdaq is nearing the launch of cash-settled bitcoin BTC$76,585.81 index options, a development that could democratize crypto risk management by removing traditional operational barriers.
Recently, the U.S. Securities and Exchange Commission granted Nasdaq PHLX conditional approval to list European-style options under the ticker QBTC. These options will be cash-settled and will track the CME CF Bitcoin Real Time Index (BRTT).
Cash-settled means that the options are settled in U.S. dollars. Upon expiration, the exchange will adjust the cash difference between the strike price and the final index value, without any actual bitcoin being delivered or received.
This new offering, still subject to CFTC approval, alleviates operational challenges for average market participants. QBTC options will trade alongside well-known technology stocks on the Nasdaq platform, allowing participants to implement hedging strategies and engage in bitcoin volatility trading directly through their existing brokerage accounts, negating the need for a separate futures or derivatives account.
In comparison, CME's bitcoin options, which have been available since 2020, are also cash-settled but are tied to Bitcoin futures rather than the spot index. They also require a dedicated derivatives account, adding to operational complexity.
This development is significant.
Each Nasdaq QBTC option contract offers exposure to precisely 1 BTC, applying a 1/100 index scaling factor with a standard $100 multiplier. In contrast, CME’s standard bitcoin option is sized at 5 BTC, which often translates to substantial amounts of notional exposure.
The smaller contract size of QBTC options facilitates precise hedging for smaller institutional managers and makes volatility trading more financially accessible for retail investors.
Options are a type of derivative contract that grants the buyer the right to purchase or sell the underlying asset at a specified price on a future date. A call option allows the buyer to purchase, reflecting a bullish outlook, while a put option protects against declines in price.
Think of it as paying a small, non-refundable deposit to secure the right to buy or sell a property at its current price over the coming months. If property values rise or fall, you still have the option to transact at the agreed-upon price and capitalize on any profit. If you decide against the transaction, you simply forfeit the initial deposit.
In recent years, crypto options, particularly bitcoin contracts, have surged in popularity as the market matures, driving the need for advanced risk management and yield-enhancing strategies.
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