Cboe Global Markets will be launching the first cash-settled index options tied to the performance of spot Bitcoin ETFs on December 2

On November 22, 2024, Cboe Global Markets, Inc., a leading derivatives and securities exchange network, has announced plans to debut the first-ever cash-settled index options tied to theperformance of spot Bitcoin ETFs.

The new offerings will officially launch on December 2, 2024, on the Cboe Options Exchange.

The options will be based on the Cboe Bitcoin U.S. ETF Index (Ticker: CBTX), developed in partnership with Cboe Labs and Cboe Global Indices.

This index tracks  the performance of a basket of spot Bitcoin ETFs listed in the U.S. exchanges, providing a robust measure correlated with spot Bitcoin prices.

A Unique Approach to Bitcoin Exposure

These index options allow investors to gain exposure to Bitcoin price movements indirectly through spot Bitcoin ETFs.

Cash-settled at expiration, the contracts eliminate the logistical complexities of delivering physical Bitcoin ETFs. The European-style exercise feature, permitting execution only at expiration, further mitigates early assignment risks.

Cboe will also offer mini index optons (Ticker: MBTX), representing 1/10th the value of standard contracts, catering to traders seeking smaller notional values and enhanced flexibility.

Additionally, FLEX options will be available, enabling participants to tailor contract terms such as exercise price and expiration.

Rob Hocking, Global Head of Product Innovation at Cboe, remarked, "Our new suite of options on the Cboe Bitcoin U.S. ETF Index offers a timely and compelling solution for traders. The flexibility and efficiency of these products provide a significant value proposition for institutional and retail market participants looking to hedge or capitalize on Bitcoin price movements without direct ownership."

Broadening Digital Asset Offerings

This launch is an expansion of Cboe’s digital asset derivatives portfolio, complementing its existing cash-settled Bitcoin and Ether margin futures.

These products are set to transition to the Cboe Futures Exchange in 2025, pending regulatory approval.

Cboe is also a dominant player in the crypto ETF space, listing the majority of U.S. spot Bitcoin and Ether ETFs.

Adam Inzirillo, Global Head of Data and Access Solutions at Cboe, emphasized, "This initiative underscores the strength of Cboe's integrated exchange ecosystem, from listing and trading to innovative product creation."

For further details, visit Cboe’s official product updates page at www.cboe.com.