Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, plans to launch a new Bitcoin (BTC) futures product later this month, pending regulatory approval. This new offering will be cash-settled and built on the XBTF Index, which reflects a tenth of the value of the FTSE Bitcoin Index, and will settle on the last business day of each month.
What to know:
- Cboe Digital aims to introduce this new Bitcoin futures product on April 28, contingent on regulatory clearance.
- This cash-settled contract will be tied to the XBTF Index, tracking only a tenth of the FTSE Bitcoin Index’s value.
- The initiative arises amid rising institutional demand for regulated cryptocurrency trading solutions.
If the regulators greenlight Cboe’s application, futures trading could commence on April 28, 2025. Futures enable participants to agree to buy or sell an asset at a predetermined price at a future date, making them a popular method for hedging and managing risks as well as leveraging market trends.
“This launch is timely as the appetite for cryptocurrency exposure continues to increase and market players seek more efficient and flexible ways to achieve and manage that exposure,” said Catherine Clay, Cboe’s Global Head of Derivatives, in her statement.
In November 2023, Cboe became the first U.S. regulated exchange to provide spot and leveraged derivatives trading through a unified platform after securing approval from the CFTC to list margined Bitcoin and Ether (ETH) futures.
