SEC Approves Nasdaq Bitcoin Index Options; CFTC Approval Pending

The Securities and Exchange Commission approved Nasdaq’s proposal to list cash‑settled, European‑style Bitcoin index options on the Philadelphia Stock Exchange. The SEC published the approval on an accelerated basis Friday, but the contracts cannot begin trading until the Commodity Futures Trading Commission grants exemptive relief.

The options will reference the Nasdaq Bitcoin Index, which tracks one one‑hundredth of the CME CF Bitcoin Real Time Index and updates with data from major cryptocurrency exchanges every 200 milliseconds. The contracts are European‑style and cash‑settled; at expiration holders receive the difference between the Bitcoin spot price and the option strike price. No physical Bitcoin will change hands and there is no risk of early assignment. Nasdaq intends to list the options under the ticker QBTC.

The SEC’s order sets a minimum price increment of $0.01 and a position limit of 24,000 contracts per side, which the order describes as roughly equivalent to 0.12% of Bitcoin’s outstanding supply. The offering settles in cash against the index rather than in underlying Bitcoin.

Because Bitcoin is classified as a commodity, the CFTC has jurisdiction and must provide exemptive relief before trading can start. The SEC’s order cites Section 717 of the Dodd‑Frank Act as allowing concurrent jurisdiction when the CFTC grants such relief. The filing states, “the concept of shared jurisdiction between the Commission and the CFTC is not new,” and cites examples such as mixed swaps and security futures.

CME Group filed a comment letter in October arguing that these contracts fall under the CFTC’s exclusive jurisdiction. The SEC acknowledged that position in its filing while describing the statutory basis for potential shared oversight when exemptive relief is provided.

The approval occurs while the SEC under Chairman Paul Atkins has moved to drop certain enforcement cases opened under the prior administration and is developing an “innovation exemption” that could permit tokenized trading of public company shares on decentralized platforms. If the CFTC grants the necessary relief, the Nasdaq‑linked options would be able to trade on Phlx and provide a listed derivatives vehicle for exposure to Bitcoin price moves without direct ownership. The CFTC’s response and any further agency commentary remain pending.