The Nasdaq stock exchange in the United States has applied for approval from regulators to add options based on a Bitcoin index, as reported by Reuters.
The exchange has announced its plans to introduce options on a Bitcoin index to offer institutions and traders an additional method for managing their exposure to Bitcoin.
Bitwise’s chief investment officer, Matt Hougan, stresses the importance of having options available for Bitcoin in order for it to become fully mainstream.
He notes that there is a gap in the liquidity of the cryptocurrency market, which can be filled by the introduction of options through exchange-traded funds (ETFs).
Options are financial tools that allow individuals to buy or sell various assets at a predetermined price and date, enabling institutions to mitigate risks and traders to increase their purchasing power.
