On May 22, 2026, the U.S. Securities and Exchange Commission (SEC) issued an accelerated approval order (Release No. 34-105549) allowing Nasdaq to list and trade index options based on the spot price of Bitcoin. The decision, first reported by Bloomberg and confirmed through the SEC’s official filing, expands the suite of regulated crypto derivatives for US investors and offers an alternative to existing Bitcoin ETF options.
The approved options are built on the CME CF Bitcoin Real-Time Index (BRTI), which aggregates real-time trade data from major crypto exchanges, including Coinbase, Bitstamp, Kraken, and Gemini. The index updates approximately every 200 milliseconds, ensuring that the options reflect live spot market conditions without stale pricing gaps.
Each QBTC option contract represents exposure to one Bitcoin, a significantly smaller notional size compared to CME’s standard Bitcoin futures contract (5 BTC). This lower contract size is designed to attract a broader range of participants — from market makers to smaller institutional traders — while maintaining defined-risk exposure within a fully regulated framework.
Until now, traders seeking option-like exposure to Bitcoin had limited regulated choices: over-the-counter products, options on CME Bitcoin futures, or options on spot Bitcoin ETFs (such as the iShares Bitcoin Trust). Nasdaq’s QBTC adds a “clean” index-based alternative that tracks the spot price directly via the BRTI, rather than relying on fund NAV or futures curves. This can reduce basis risk and offer more precise hedging tools for digital asset portfolios.
As Nasdaq officials noted after the approval, “these instruments will give US equity traders an additional regulated way to express views on Bitcoin’s price, combining exchange transparency with standardized risk management tools.”
The SEC’s order, issued under an accelerated review on May 22, 2026, permitted Nasdaq PHLX to list and trade the contracts. According to the official release (No. 34-105549), the exchange proposed — and the SEC accepted — a position limit of 24,000 contracts per side, which is equivalent to roughly 0.12% of Bitcoin’s circulating supply. The minimum trading increment is set at $0.01, and the options will be listed with up to five consecutive monthly expirations, plus longer-dated expirations in June and December.
The SEC emphasized that while Bitcoin is a commodity (sharing jurisdiction with the CFTC), Nasdaq’s surveillance-sharing agreements with crypto spot markets are sufficient to detect and deter manipulation.
Because QBTC options are European-style, they can only be exercised on the expiration date. This removes the risk of early assignment — a feature that many institutional traders prefer for hedging strategies and portfolio management, as it avoids unexpected cash-flow obligations.
Despite the SEC’s approval, Nasdaq’s Bitcoin index options cannot begin trading immediately. Because Bitcoin is legally classified as a commodity under the Commodity Exchange Act, the Commodity Futures Trading Commission (CFTC) retains jurisdiction over certain crypto derivatives. The QBTC contracts still require exemptive relief from the CFTC before they can be formally listed.
The SEC explicitly addressed this dual-regulator dynamic in its order, referencing Section 717 of the Dodd-Frank Act and noting that joint SEC-CFTC oversight is not unprecedented (it already applies to security futures products and mixed swaps). Industry analysts widely expect the CFTC to review the product over the coming months, with a potential launch window in the second half of 2026 — assuming the CFTC grants exemptive relief without major modifications.
The diversification of choice is widely expected to improve market liquidity and narrow bid-ask spreads across Bitcoin derivatives over time, benefiting both retail and institutional participants.
Reactions from financial analysts and crypto industry observers have been broadly constructive. Several market commentators noted that the SEC’s accelerated approval reflects a pragmatic approach to integrating crypto-native products into traditional exchanges. “The approval of QBTC is another milestone in the financialization of Bitcoin, providing institutional traders with a regulated, cash-settled index option that directly references spot prices,” said an investment strategist at a major digital asset firm.
Bloomberg Intelligence analysts highlighted that once the CFTC gives its final nod, the product could see substantial open interest growth, particularly among institutions that prefer cash-settled index products over physically settled or ETF-based alternatives. “The smaller contract size (1 BTC) also democratizes access, making it suitable for smaller hedge funds and family offices,” they added.
Legal experts, however, remind that the CFTC review remains a variable; but given the SEC’s thorough analysis and the product’s design, most see CFTC relief as a matter of procedural timing rather than a substantive hurdle.