CBOE Plans to Offer Cash-Settled FTSE Bitcoin Futures On April 28
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Cboe Global Markets, a derivatives and securities exchange network, is preparing to launch the Cboe FTSE Bitcoin Index futures. Trading is projected to commence on the Cboe Futures Exchange on April 28, pending regulatory approval. The exchange aims to enable traders to manage their Bitcoin exposure with a more comprehensive set of tools. Big Players Want In! The new futures contracts will be launched in collaboration with FTSE Russell, an established index and benchmark provider specializing in creating innovative products in the digital asset markets. The contracts will be based on the FTSE Bitcoin Reduced Value (1/10th) Index (XBTF). This means that these contracts will reflect one-tenth of the value of the FTSE Bitcoin Index instead of reflecting the full price. The contract size can make it easier for traders to manage their exposure to Bitcoin without having to handle the full volatility of the cryptocurrency’s price movements. The XBTF futures are cash-settled, meaning that instead of the physical delivery of Bitcoin, the contracts will be settled in cash based on the index value at the contract’s expiration. Settlement will occur in the afternoon (P.M.) on the last business day of each month. The futures are designed to complement Cboe’s recently launched options on the Cboe Bitcoin U.S. ETF Index. CBOE believes that these new contracts will be useful for market participants looking to implement numerous trading and hedging strategies related to Bitcoin’s price volatility. Commenting on the launch, Catherine Clay, Global Head of Derivatives at Cboe, said it aims to meet the increasing demand for crypto exposure and the need for capital-efficient and versatile tools. According to her, this new product will enhance Cboe’s existing Bitcoin product ecosystem, which includes spot Bitcoin ETFs listed on their equities exchange and Bitcoin ETF index options. Broad Digital Asset Offerings Cboe has…
Filed under: News - @ April 9, 2025 7:19 am