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Cboe Global Markets has expanded its cryptocurrency derivatives offering with the introduction of new cash-settled bitcoin futures contracts, providing investors with additional tools for bitcoin exposure and risk management.
The Cboe FTSE Bitcoin Index futures, which began trading on the Cboe Futures Exchange (CFE) today, are based on the FTSE Bitcoin Reduced Value Index (Ticker: XBTF) and represent the latest addition to the exchange's growing digital asset derivatives suite.
The new futures contracts are designed to be cash-settled at expiration, eliminating the need to physically deliver bitcoin and potentially simplifying the trading process for market participants.
"As customer demand for crypto-based derivatives continues to rise, Cboe is committed to building a well-rounded ecosystem to help facilitate more efficient, flexible access to bitcoin exposure and risk management," 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."
The launch follows Cboe's earlier introduction of cash-settled options on the Cboe Bitcoin U.S. ETF Index (Tickers: CBTX and MBTX), creating what the company describes as a complementary suite of bitcoin-related index derivatives products. Both the futures and options contracts are cleared through the Options Clearing Corporation (OCC).
The exchange suggests these products can be used individually for managing bitcoin volatility or together to implement more sophisticated trading strategies.
Market makers have expressed support for the new offering. Barak Capital commented: "As investor participation in digital assets has grown and become more institutionalized, the ability to access efficient and stable markets is paramount. As a leading market maker, the Barak Capital group has been an established liquidity provider for Cboe's markets for years. We look forward to acting as a liquidity provider in Cboe FTSE Bitcoin Index futures and to supporting Cboe's market in this product."
Tom Chlada, Chief Operating Officer at Prime Trading, LLC, added: "Prime Trading, LLC is excited to support Cboe's continued expansion of its crypto derivatives product suite and to act as a liquidity provider in the new XBTF futures. We are strongly aligned with Cboe's efforts to grow the crypto derivatives market and look forward to working with Cboe to provide its customers with a best-in-class trading experience."
The XBTF futures contracts will settle in the afternoon on the last business day of each month. They are based on the XBTF Index, which was developed by FTSE Russell in collaboration with Digital Asset Research and represents one-tenth the value of the FTSE Bitcoin Index.
