The SEC approved Nasdaq PHLX to list Nasdaq Bitcoin Index Options on May 22, opening a new route for U.S. investors to trade Bitcoin price exposure without going through a spot ETF. Unlike options tied to products such as IBIT, this contract is built directly on a Bitcoin price index rather than an ETF wrapper.
The product uses cash settlement and follows a European-style exercise format, meaning exercise is only available at expiration. Position limits are set at 24,000 contracts, with a minimum price increment of $0.01. Based on index levels at the end of April, each contract carries a notional value of roughly $76,000.
Indexed to CME pricing, settled against BRRNY
The options track the CME CF Bitcoin Real Time Index (BRTI) divided by 100. Final settlement is based on BRRNY, the New York variant of the CME CF Cryptocurrency Reference Rate, also divided by 100 and formally labeled BRRNY-NOS.
BRRNY is calculated every day at 4 p.m., in line with the close of U.S. financial markets, and runs across 365 days a year. The benchmark aggregates trading data from multiple exchanges that meet CME CF standards. No physical delivery of Bitcoin or ETF shares is involved, leaving the contract as a direct index-linked derivative.
A different structure from IBIT options
Since the SEC cleared options on IBIT in October 2024, U.S. traders looking to express views through listed options have largely had to use spot Bitcoin ETFs. In the same month, NYSE and CBOE also received approval for options on 11 spot Bitcoin ETFs. Later, NYSE removed position limits on crypto ETF options, putting products such as IBIT on closer footing with traditional commodity ETFs.
That said, ETF options still reflect factors tied to the fund itself, including premiums or discounts, creation and redemption mechanics, and trading constraints. The newly approved index options remove that layer and tie exposure straight to CME’s benchmark. For institutional participants, that creates an additional hedging route that does not rely on an ETF vehicle.
Bitcoin derivatives shelf keeps expanding
The approval arrives as CME also plans to launch Bitcoin volatility futures on June 1. Those contracts are aimed at trading the scale of BTC price swings rather than outright direction. Taken together, the U.S. listed market is adding more specialized Bitcoin derivatives, giving traders a broader set of tools for price exposure and risk management.