Cboe Global Markets is set to launch cash-settled index options on December 2, based on the Cboe Bitcoin US ETF Index.
Cboe Global Markets has announced that it will distribute the first cash-settled index options tied to the spot price of bitcoin. These options, set to launch on Monday, December 2, will be based on the recently produced Cboe Bitcoin US ETF Index.
The purpose of this index is to track the performance of spot bitcoin ETFs listed on U.S. exchanges. The options will provide users with the opportunity to spot bitcoin exchange-traded funds (ETFs), which is an indirect approach to interacting with bitcoin.
The cash-settled nature of these index options, which closes positions in cash at expiration, eliminates the complexity of physically delivering bitcoin exchange-traded funds. In addition to cash settlement, the options will offer European-style exercise, allowing exercise only on the expiration date.
Our index options offer a unique value proposition that we believe will appeal to both institutional participants and retail traders alike, who are looking to capitalize on or hedge against bitcoin’s price movements without directly holding the asset,” said Rob Hocking, the Global Head of Product Innovation at Cboe.
Additionally, the exchange will launch Cboe Mini Bitcoin U.S. ETF Index options (MBTX), which will have a notional value that is one-tenth of the size of conventional options. This introduction expands Cboe’s digital asset derivatives portfolio, which already includes cash-settled bitcoin and ether margin futures traded on the Cboe Digital Exchange.