The SEC approved Nasdaq PHLX’s proposed rule change to list Nasdaq Bitcoin Index Options on May 22, clearing a major regulatory step toward bringing cash-settled Bitcoin volatility trading inside the US-listed options infrastructure.
The contracts, trading under ticker QBTC, are cash-settled in US dollars against a Bitcoin benchmark and fit within the same account and margin framework used for equity index options. This places QBTC in the market for cash-settled Bitcoin options without requiring investors to hold BTC or use crypto-native derivatives venues.
The key distinction from existing Bitcoin ETF options is significant: Bitcoin ETF options track fund shares, while Nasdaq Bitcoin index options reference a Bitcoin benchmark directly. QBTC creates an options market around Bitcoin exposure itself, inside the listed-index-options stack, priced against a real-time Bitcoin benchmark and cleared through OCC’s standard infrastructure.
The SEC order describes the contracts as European-style, P.M.-settled, and cash-settled, with final settlement value based on BRRNY, a New York close Bitcoin benchmark synchronized to 4:00 p.m. Eastern time. The underlying index is the CME CF Bitcoin Real Time Index (BRTI), divided by 100, with CF Benchmarks calculating the indicative value every 200 milliseconds during the trading day.
Nasdaq argued in its filing that the index options would allow investors in spot Bitcoin ETFs to hold QBTC contracts in the same securities account and under the same margin regime as their ETF exposure, integrating Bitcoin risk management into existing securities account workflows.
The infrastructure enabling this normalization is the Options Clearing Corporation (OCC), which processed 15.2 billion options contracts in 2025, including 5.68 billion ETF options and 1.26 billion index options. In April 2026 alone, OCC cleared 1.45 billion total contracts, with index options volume up 23.8% year over year.
Bitwise CIO Matt Hougan said that Bitcoin options are essential for the asset class to become fully normalized. The SEC cited the spot Bitcoin market cap at approximately $1.52 trillion as of April 29.
However, trading cannot begin until the CFTC grants the necessary exemptive relief and the OCC receives approval to update the Options Disclosure Document. Once operational, QBTC would allow institutional investors to hedge Bitcoin exposure using the same portfolio-margin systems and volatility desk infrastructure that equity indexes use, potentially marking the next phase of Bitcoin’s integration into traditional finance.