SEC Approves Prediction Market-Style Options Tied to Coinbase, Nvidia and Tesla
The U.S. Securities and Exchange Commission has officially approved prediction market-style options tied to the financial results of Coinbase, Nvidia, Tesla and more than 20 other companies, according to Coin Bureau. The contracts will allow traders to take positions on whether specific corporate metrics finish above or below predetermined levels.
The newly approved products will cover a range of business performance indicators, including Coinbase's trading volume and MARA's Bitcoin production. Rather than relying on conventional options structures, the contracts use a fixed payout system: a winning contract pays $1, while a losing contract expires worthless.
Contracts Cover More Than 100 Corporate Metrics
Cboe plans to list more than 100 metrics under the new framework. The range of indicators extends beyond cryptocurrency-related businesses to include measures such as Nvidia's data center revenue and SpaceX's total revenue.
The contracts will allow traders to express views on whether a company's reported performance will exceed or fall short of a specified threshold. For example, a trader could take a position based on whether Coinbase's trading volume or MARA's Bitcoin production comes in above or below a set level.
The fixed-payout structure provides a straightforward outcome for each contract. If a position wins, it pays $1; if it loses, it expires worthless. The available information does not specify the individual thresholds, contract terms or settlement dates for the more than 100 metrics.
Robinhood Plans Retail Access With No Fees Through Year-End
Robinhood is set to become the first retail broker to offer the products, according to Coin Bureau. The brokerage plans to provide access without fees through the end of the year.
The planned retail offering could make the contracts accessible to individual traders who want to take positions on specific corporate results. However, the reported approval and planned distribution do not establish how much trading activity the products will attract or how widely they will be adopted.
The companies and metrics cited in the announcement span several industries. Coinbase's trading volume and MARA's Bitcoin production relate to the cryptocurrency sector, while Nvidia's data center revenue reflects a different business segment. SpaceX's total revenue is also among the metrics Cboe plans to include.
Coin Bureau reported that the SEC had officially approved the prediction market-style options. Cboe is expected to list more than 100 corporate metrics, while Robinhood is set to be the first retail broker to offer the contracts with no fees through year-end.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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