SEC Approves Nasdaq Bitcoin Index Options, Expanding Institutional Crypto Derivatives

The U.S. Securities and Exchange Commission has approved options trading tied to the Nasdaq Bitcoin Index, a move that could deepen the range of ‘risk-management’ tools available to institutional investors as crypto-linked derivatives continue to migrate into regulated venues.

Watcher.Guru reported the SEC decision, which allows market participants to trade listed options referencing the Nasdaq benchmark for Bitcoin (BTC). While the scope and timeline of product rollout will ultimately depend on exchange and clearing processes, the approval is widely viewed as another incremental step toward integrating Bitcoin exposure into mainstream market infrastructure—particularly for hedging and volatility trading strategies that require standardized, exchange-traded instruments.

Institutional activity also surfaced in regulatory filings. Bank of America ($BAC) reported roughly $53 million in holdings across crypto exchange-traded funds (ETFs) and related equities during the first quarter, according to its latest 13F filing cited by Odaily. The bank’s largest ETF position was in BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), valued at about $37 million, representing 972,590 shares—up from 719,008 shares in the prior quarter.

Beyond IBIT, the filing showed exposure to several other Bitcoin-linked products, including positions worth approximately $7.98 million in Bitwise products, about $3.32 million in Grayscale’s mini fund, and roughly $1.71 million in Fidelity offerings. Smaller allocations were also disclosed in Grayscale Bitcoin Trust (GBTC), VanEck’s HODL product, and ARK 21Shares funds.

In contrast, Bank of America appeared to reduce its Ethereum (ETH) ETF holdings sharply, leaving 67,492 shares of BlackRock’s spot Ethereum ETF—about $1.06 million in value. The bank also trimmed exposure to Solana (SOL) ETFs, while maintaining a position of 13,000 shares in a Volatility Shares XRP ETF product, according to the report.

The bank also disclosed a significant equity stake in Strategy ($MSTR), holding approximately 3.96 million shares valued at around $660 million. Strategy has become a closely watched proxy for leveraged Bitcoin exposure given its large BTC treasury strategy and sensitivity to crypto market cycles.

Flows into U.S.-listed spot Solana ETFs remained positive. Odaily, citing SoSoValue data, reported that spot SOL ETFs recorded net inflows of $5.94 million on May 22 (U.S. Eastern Time). Fidelity’s Solana fund (FSOL) led daily subscriptions with about $3.48 million, bringing cumulative net inflows to roughly $185 million. Bitwise’s Solana staking ETF (BSOL) added about $2.29 million on the same day, lifting cumulative net inflows to approximately $905 million.

As of the reporting period, spot SOL ETFs held total net assets of about $971 million, with SOL accounting for 1.98% of net asset value. Cumulative net inflows across the category were reported at about $1.13 billion.

SoSoValue data also showed net inflows into a U.S. spot HYPE ETF category totaling roughly $10.95 million on May 22 (ET), with the day’s inflow attributed entirely to a Bitwise Hyperliquid ETF. Cumulative net inflows for that ETF were put at about $35.96 million. Total net assets across spot HYPE ETFs were approximately $89.21 million, with HYPE representing 0.68% of net assets. Cumulative net inflows for the broader HYPE spot ETF category were reported at about $74.91 million.

On-chain and exchange flow data added another layer to market positioning. Whale Alert flagged multiple large stablecoin transfers, including 284,196,459 USDC moved from an unknown wallet to Coinbase, a transaction valued at roughly $284.3 million. A separate transfer of about 143.37 million USDC to Coinbase was also reported. Large stablecoin deposits to centralized exchanges are often monitored as a potential signal of near-term ‘buy-side liquidity,’ though the ultimate intent—such as market-making, OTC settlement, hedging, or collateral management—cannot be confirmed from blockchain data alone.

In decentralized finance, Whale Alert also reported an unknown whale address transferring 128,470,074 USDC to Aave, a lending and borrowing protocol commonly used for ‘collateralized’ leverage, yield strategies, and liquidity management. The transaction was valued at roughly $128.5 million.

Macro and regulatory developments also shaped the day’s narrative. Odaily reported that Kevin Warsh was sworn in as chair of the U.S. Federal Reserve, a role central to interest-rate policy and liquidity conditions that can influence risk assets, including cryptocurrencies. Market participants typically watch the Fed closely because changes in policy expectations can shift appetite for high-volatility assets and affect dollar liquidity.

Meanwhile, U.S. lawmakers signaled increased scrutiny of prediction markets. CoinDesk reported that the House Oversight and Government Reform Committee plans to investigate potential insider trading risks tied to Polymarket and Kalshi. Chairman James Comer said the committee would review internal records to assess whether government officials may have used non-public information relating to policy, geopolitics, or military operations to profit. Comer also raised the possibility of pursuing legislation to bar members of Congress, government personnel, and public officials from participating in prediction markets, reflecting broader concerns about ‘national security’ risks and gambling-like activity as the sector grows.

Separately, the FBI’s Internet Crime Complaint Center (IC3) warned that crypto ATM-related scams increased across the U.S. in 2025. Odaily cited IC3 data showing more than 13,400 complaints tied to crypto ATM fraud, with total losses exceeding $388 million—up 23% in complaints and 58% in losses versus 2024. More than half of complaints came from individuals aged 50 and older, who accounted for over $302 million in losses. By state, Texas recorded the largest losses at about $56.8 million, followed by Florida and California.

Taken together, the SEC’s approval of Nasdaq Bitcoin Index options, shifting institutional allocations in 13F filings, ETF inflow trends, and heightened regulatory and enforcement attention underscore a market increasingly defined by the intersection of ‘regulated access,’ liquidity conditions, and evolving oversight—factors likely to shape sentiment and volatility in the months ahead.