Cboe Global Markets has revealed plans to debut the first cash-settled index options tied to the spot price of Bitcoin. The new product, set to launch on Monday, Dec. 2, will be based on the Cboe Bitcoin U.S. ETF Index, a benchmark specifically designed to track the performance of spot Bitcoin ETFs listed on U.S. exchanges.
These options provide market participants with an indirect means of exposure to spot Bitcoin ETFs. Cash settlement will simplify the trading process by eliminating the need for the physical delivery of Bitcoin ETFs. Additionally, the options will feature a European-style exercise, allowing execution exclusively 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, Cboe’s Global Head of Product Innovation.
The exchange will also introduce Mini Bitcoin U.S. ETF Index options (MBTX), which will feature a notional value one-tenth the size of standard options, catering to a broader range of market participants.
This latest offering expands Cboe’s portfolio of digital asset derivatives, which already includes cash-settled Bitcoin and Ether margin futures traded on the Cboe Digital Exchange. The launch is expected to enhance accessibility and flexibility for investors seeking exposure to Bitcoin’s price movements without directly holding the cryptocurrency.