How Nasdaq's New Bitcoin Options Quietly Ended Deribit's 85% Reign

The Securities and Exchange Commission has cleared Nasdaq to list cash-settled Bitcoin (BTC) index options, ending years of regulatory delay around onshore crypto derivatives.

Professional desks can now access exchange-traded, cash-settled Bitcoin options without touching spot BTC or navigating the physical-delivery mechanics of ETF-based contracts. The product sits inside the same regulatory framework that governs S&P 500 index options, with clearing handled by the Options Clearing Corporation.

The decision caps a multi-year runway that began with the January 2024 spot Bitcoin ETF approvals and accelerated through Washington's current wave of crypto-friendly rulemaking.

What The SEC Actually Approved

The green light covers cash-settled, European-style options referencing a Bitcoin index rather than ETF shares. European-style means contracts can be exercised only at expiration, eliminating the pin risk that creates headaches with American-style ETF options.

Cash settlement means the holder receives the dollar difference between strike and index level at expiry. No underlying Bitcoin changes hands. That structural choice is deliberate, mirroring the CME's existing BTC futures and options, which have used cash settlement since December 2017 without the manipulation concerns that plagued earlier crypto derivative proposals.