Cboe Global Markets is set to launch its first cash-settled index options tied to the price of spot Bitcoin, a move that aims to bridge traditional finance with the dynamic world of cryptocurrency.
The new product, based on the Cboe Bitcoin U.S. ETF Index (CBTX), will debut on the Cboe Options Exchange on December 2, providing investors with a fresh approach to Bitcoin exposure.
The CBTX index tracks the performance of U.S.-listed Bitcoin exchange-traded funds (ETFs), offering indirect exposure to Bitcoin’s price without requiring ownership of the digital asset itself.
This allows investors to bypass the complexities of handling cryptocurrencies while still benefiting from their market movements.
Unlike traditional options that involve physical delivery, CBTX options will be cash-settled, meaning investors receive or pay the difference in value at the contract’s expiration. This approach aligns with Cboe’s goal of simplifying access to crypto investments.
Cboe is also introducing mini options (MBTX) for CBTX, which are 1/10th the size of standard options, catering to smaller investors.
In addition, traders can customize contract terms with cash-settled FLEX options available for both CBTX and MBTX.
“These new options provide a timely and efficient way for traders to gain exposure to spot Bitcoin without directly holding it,” said Rob Hocking, Global Head of Product Innovation at Cboe.
This launch is part of Cboe’s broader strategy to expand into the cryptocurrency market. The company already offers cash-settled Bitcoin and Ether margin futures on the Cboe Digital Exchange, with plans to migrate these products to the Cboe Futures Exchange in 2025.
Additionally, Cboe’s BZX Equities Exchange remains a key player for U.S.-listed crypto ETFs.
