• Nasdaq is seeking approval to launch and trade bitcoin options.
• This follows an announcement by the New York Stock Exchange earlier this year that is was also looking to list bitcoin index options.
• Neither have yet received the green light from regulators.

Nasdaq is seeking approval from regulators to allow the launch and trading of options tied to the price of bitcoin (BTC) , the exchange said Tuesday .

The proposed Nasdaq Bitcoin Index Options (XBTX) is in partnership with index provider CF Benchmarks and would track the CME CF Bitcoin Real-Time Index operated on the Chicago Mercantile Exchange exchange. This will help investors hedge investments in the asset class, the Nasdaq (NDAQ) said.

“This collaboration further combines the innovative crypto landscape with the resiliency and reliability of traditional securities markets and would mark a significant milestone for expanding the maturation of the digital assets market,” said Greg Ferrari, Vice President and Head of Exchange Business Management at Nasdaq.

Options are an important vehicle for investors looking to manage risk as they give the buyer the right to buy or sell an asset at a set price and on an agreed date.

The move follows an earlier announcement by the New York Stock Exchange this year that it was planning to list bitcoin index options. It is still awaiting approval by the Securities and Exchange Commission, however.