Cboe set to launch first cash-settled options related to spot Bitcoin

Key Takeaways

Cboe’s new Bitcoin ETF index choices launch December 2, providing money settlement and European-style train.
The Cboe Bitcoin US ETF Index tracks the efficiency of US-listed spot Bitcoin ETFs and gives publicity to Bitcoin’s value actions.

Cboe International Markets has introduced plans to introduce the primary cash-settled index choices tied to the value of spot Bitcoin.

Launching on December 2, these choices shall be solely listed and traded on the Cboe Choices Trade underneath the ticker CBTX.

The choices are based mostly on the newly developed Cboe Bitcoin US ETF Index, an index designed to trace the efficiency of US-listed spot Bitcoin ETFs.

Developed by Cboe Labs and Cboe International Indices, this index serves as a consultant measure of Bitcoin’s value, offering market members with publicity to Bitcoin ETFs and not directly to Bitcoin itself.

The trade will even introduce Cboe Mini Bitcoin US ETF Index choices (MBTX), sized at one-tenth of the usual choices’ notional worth.

Each commonplace and mini choices will characteristic European-style train, limiting execution to the expiration date.

“Our new suite of choices on the Cboe Bitcoin US ETF Index gives a well timed and compelling answer for merchants to effectively acquire publicity to identify Bitcoin,” mentioned Rob Hocking, International Head of Product Innovation at Cboe.

The launch expands Cboe’s digital property derivatives choices, which embody cash-settled Bitcoin and Ether margin futures on Cboe Digital Trade.

These futures are anticipated to maneuver to Cboe Futures Trade within the first half of 2025, pending regulatory evaluate.