Cboe Global Markets to Launch New Bitcoin Futures Product
Cboe Global Markets is gearing up to introduce a new Bitcoin futures product this month, pending approval from regulators. In an announcement made on April 7, the exchange revealed that trading for the Cboe FTSE Bitcoin (BTC) Index Futures is anticipated to commence on April 28. This new cash-settled futures contract will be pegged to the FTSE Bitcoin Index, which will be modified to represent only a tenth of its actual value. Trading will occur under the ticker XBTF, with settlements scheduled for the final business day of each month.
This product is aimed at enabling traders to manage their Bitcoin exposure without the necessity of owning the cryptocurrency itself.
Enhanced Trading Strategies
This initiative complements Cboe’s recent rollout of options linked to Bitcoin exchange-traded funds (ETFs), providing investors with more comprehensive strategies for both hedging and engaging with cryptocurrencies. Catherine Clay, who leads Cboe’s derivatives division, lauded the launch as a significant enhancement to its offerings related to Bitcoin. She noted the alignment with increasing demand for crypto exposure and the industry’s search for efficient and flexible management options.
FTSE Bitcoin Index Foundation
The FTSE Bitcoin Index, which serves as the foundation for these futures, was developed through a partnership between FTSE Russell and Digital Asset Research. It aims to accurately capture Bitcoin’s market movements by adhering to rigorous standards regarding data sources and exchange inclusion.
Ongoing Expansion into Digital Assets
This new product reflects Cboe’s ongoing expansion into digital assets, which includes its recent listings of spot Bitcoin and Ethereum ETFs, as well as Bitcoin ETF index options in both standard and mini formats. Cboe has reported a record-setting March, achieving its highest trading volume with an average of 18.8 million options contracts traded daily. Additionally, its S&P 500 contracts and proprietary index options also hit new monthly records, alongside a significant single-day trading high of 4.8 million SPX contracts on March 10.
