Key Insights
- Cboe Global Markets is launching the first-ever cash-settled index options based on spot bitcoin ETF prices on December 2.
- The new products include standard options and Mini Bitcoin U.S. ETF Index options (MBTX) at one-tenth the size, catering to both institutional and retail investors.
CHICAGO (MarketsXplora) – Cboe Global Markets announced on Thursday it will introduce the market’s first cash-settled index options tied to spot bitcoin prices, marking a significant expansion in cryptocurrency derivative offerings.
The new product, set to debut on Monday, December 2, will track the performance of U.S.-listed spot bitcoin ETFs through the newly created Cboe Bitcoin US ETF Index.
The options will provide investors an indirect exposure to bitcoin through spot ETFs while eliminating the need for physical delivery of the underlying assets. The European-style exercise feature restricts option execution to the expiration date only.
“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 capitalise on or hedge against bitcoin’s price movements without directly holding the asset,” Rob Hocking, Cboe Global Head of Product Innovation, told MarketsXplora.
In a move to accommodate smaller investors, Cboe will simultaneously launch Mini Bitcoin U.S. ETF Index options (MBTX), which will trade at one-tenth the notional value of standard options.
The initiative expands Cboe’s existing digital asset derivatives suite, complementing its cash-settled bitcoin and ether margin futures currently trading on the Cboe Digital Exchange.
Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.