SEC Clears Nasdaq PHLX to List QBTC Cash-Settled Bitcoin Options, Pending CFTC Sign-Off
Nasdaq is preparing to enter the bitcoin options arena with a product designed to make hedging and volatility trading more accessible across mainstream brokerage platforms.
The U.S. Securities and Exchange Commission has granted Nasdaq PHLX conditional approval to list European-style, cash-settled bitcoin options under the ticker QBTC. The contracts will reference the CME CF Bitcoin Real Time Index (BRTT) and settle in U.S. dollars, meaning no bitcoin will be delivered or received. At expiration, the exchange will credit or debit the cash difference between the strike price and the index's final value.
Trading cannot begin until the product also receives approval from the Commodity Futures Trading Commission (CFTC).
If launched, QBTC would offer "stock-like" access to bitcoin options by listing on Nasdaq's standard options platform. That setup could allow many investors to trade bitcoin options through existing brokerage accounts rather than opening dedicated futures or derivatives accounts, reducing operational friction for retail traders and smaller institutions.
Nasdaq is also positioning QBTC as a smaller, more flexible contract. Each option is sized to provide exposure equivalent to 1 BTC through a 1/100th index scaling factor and a $100 multiplier. By comparison, CME's standard bitcoin options, introduced in 2020 and tied to futures, are typically sized at 5 BTC, which can represent a sizable notional commitment.
The contracts are European-style, so they can only be exercised at expiration. They are cash-settled, so traders do not take delivery of bitcoin.
Options give buyers the right, but not the obligation, to buy (a call) or sell (a put) an underlying asset at a preset strike price on a future date. Calls are commonly used to express bullish views, while puts are often used as downside protection.
The move comes as crypto options markets have expanded alongside rising institutional participation, driving demand for hedging, yield strategies, and volatility trading tools. Nasdaq's smaller, brokerage-friendly structure could broaden access to those strategies.
If the CFTC approves the product, QBTC could lower both the operational barriers and sizing hurdles that have limited participation in bitcoin options, giving more investors a simpler way to hedge crypto exposure or trade volatility.
