Cboe launches cash-settled Bitcoin Index futures

Cboe Global Markets is expanding its offering of crypto-based derivatives with the launch of its new Bitcoin product on the Cboe Futures Exchange. 

Cboe, a leading derivatives and securities trading and investment solutions provider,  announced trading for its new Bitcoin ( BTC ) index futures on Tuesday, April 29. 

The Cboe FTSE Bitcoin Index futures is a cash-settled futures contract based on the FTSE Bitcoin Reduced Value Index. Its launch adds to the platform’s suite of digital asset products, which already includes spot Bitcoin exchange-traded funds and Bitcoin ETF options .

As a cash-settled offering, the BTC index futures product removes the complexities associated with physically-delivered Bitcoin. XBTF futures will settle in the afternoon on the last business day of each month.

Demand sees Cboe bring the new product to offer another way for investors to gain exposure and manage risk with BTC, said Catherine Clay, global head of derivatives at Cboe. 

“Our launch of the new Cboe FTSE Bitcoin Index Futures adds a key building block to our crypto derivatives toolkit — offering market participants another versatile tool to gain and seek to hedge bitcoin exposure, all within a regulated and transparent marketplace, with centralized clearing,” Clay added.

XBTF launches on the back of strong demand after Cboe introduced cash-settled options on the Cboe Bitcoin U.S. ETF Index.

The firm revealed plans for CBTX in November 2024, jointly unveiling the offering in December with Cboe Labs and Cboe Global Indices.

CBTX was the first U.S. spot Bitcoin ETF index for the U.S. market and offers a modified market cap-weighted index that tracks the performance of a basket of spot BTC ETFs listed in the U.S. The index fund correlates closely to the price of spot Bitcoin.

As well as spot Bitcoin ETFs, Cboe’s BZX Equities Exchange lists spot Ether ( ETH ) ETFs.