CBOE Launches Cash-Settled Index Options for Bitcoin Spot ETF
Cboe is set to launch the first cash-settled index options product for Bitcoin spot ETFs. The options are based on the new Cboe Bitcoin US ETF Index, designed to mirror the performance of Bitcoin spot ETFs listed on U.S. exchanges. The options will launch on December 2, 2024, and will be listed and traded exclusively on the Cboe Options Exchange.
According to a Cboe press release , this market capitalization-adjusted index is designed to track the performance of a basket of U.S.-listed Bitcoin spot ETFs. Furthermore, it is designed to correlate with the spot price of Bitcoin, making it a representative measure of the asset. The index options will be cash-settled. This means that positions are closed in cash upon expiration, eliminating the hassle of physically taking delivery of the Bitcoin ETF.
“Our new suite of options on the Cboe Bitcoin US Index ETF provides a timely and compelling solution for traders to efficiently gain exposure to spot Bitcoin,” said Rob Hocking, Global Head of Product Innovation at Cboe. “We expect the unique benefits of cash settlement, combined with the availability of multiple index sizes and FLEX options, to provide clients with greater flexibility in their trading strategies. Our index options offer a unique value proposition that we believe will appeal to both institutional participants and retail traders looking to leverage or hedge Bitcoin’s price movements without directly holding the asset.”
Cboe Announces Major Bitcoin ETF, Capitalizing on BTC’s Growth
With Bitcoin’s meteoric rise over the past month, asset management firms and networks are looking to capitalize on the gains for their clients. Spot Bitcoin ETFs have been a huge success since their launch earlier this year. Now that Bitcoin is approaching $100,000, Bitcoin ETFs are expected to become even more popular. The Cboe Cash-Settlement Index will be the first of its kind and will be a game changer for Bitcoin investors.
“This latest initiative demonstrates the strength of Cboe’s trading ecosystem – from listing and trading a Bitcoin ETF on our U.S. equity exchange, to generating data that drives index creation, and now launching innovative trading products like the Cboe Bitcoin US ETF Index Options,” said Adam Inzirillo, Head of Global Access and Data Solutions at Cboe. “The ability to leverage our entire platform to continually bring new solutions to market is a key differentiator for Cboe and a huge benefit to our clients.”