Cboe Global Markets, one of the world’s leading securities and derivatives exchange networks, announced the launch Cash-settled options based on a US spot bitcoin (BTC) ETF index.
This new product, available starting Monday, December 2, will be traded exclusively on the Cboe Options Exchange and will be regulated by the Securities and Exchange Commission (SEC).
The options will be linked to the newly developed Cboe Bitcoin US ETF Index (CBTX), an index that tracks the performance of a basket of spot bitcoin ETFs listed on US exchanges.
This index was designed to accurately reflect bitcoin spot price movementsas indicated by the company in a statement.
As a cash-settled product, these options eliminate the need for physical custody of bitcoin or the underlying ETFs, providing a simpler solution for investors.
“Our new set of options offers a timely and attractive solution for traders to efficiently gain exposure to bitcoin spot,” said Rob Hocking, Global Head of Product Innovation at Cboe. Adds the executive: “We believe that the unique benefits of cash settlement, combined with the availability of different index sizes and FLEX options, will provide clients with greater flexibility in their trading strategies.”
Cboe will also launch, alongside the standard options, mini contracts on the Cboe Bitcoin US ETF Index (MBTX), with a face value equivalent to 1/10 of the standard options. These contracts seek to appeal to smaller portfolios and allow for more detailed risk management strategies. Additionally, FLEX options will be available, allowing traders to customize terms such as strike price, strike style, and expiration date.
The product will be Aimed at both institutional and retail investors. According to Cboe, the options will be exercisable only at expiration and will allow market participants to “capitalize on price movements, manage risks and express their views on the market.”
To understand the magnitude of this news, it is necessary to know that Cboe Global Markets is one of the main networks of stock exchanges and derivatives worldwide.
Founded in 1973 as the Chicago Board Options Exchange, it has expanded its operations throughout North America, Europe and Asia-Pacific. The company offers platforms for trading options, futures, stocks and currencies, operating exchanges in the United States, Canada, the Netherlands and Australia. In Europe, Cboe is the largest exchange by trading volume, the second largest in Canada and the third largest in the United States.
In financial terms, Cboe reported revenue of $532 million in the third quarter of 2024, representing an increase of 11% compared to the same period last year. This growth was driven by an increase in options and futures trading, reflecting the robustness and reach of its services in global financial markets.
As NoticiasVE reported, This week the SEC approved options on the BlackRock and Grayscale bitcoin ETF. According to investor Joe Consorti, this positions bitcoin in the “big leagues” of the financial markets.
The price of BTC accompanies this good news and at the time of this publication is approaching $100,000.