Cboe Digital Plans New Bitcoin Futures Launch
Cboe Digital, the cryptocurrency division of the renowned Chicago Board of Options Exchange, is eagerly anticipating the launch of a new bitcoin (BTC) futures product, pending regulatory approval. The exchange announced this exciting development on Monday.
This innovative trading instrument, developed in collaboration with FTSE Russell, will be cash-settled and linked to the XBTF Index, which represents one-tenth of the value of the FTSE Bitcoin Index. If the regulators give the green light, the new futures contract is set to commence trading on April 28.
Futures contracts are a popular type of derivative that allows buyers and sellers to agree on a specific price and date for the exchange of an asset in the future. These instruments are widely utilized by traders to hedge against risks, manage their portfolios, and capitalize on prevailing market trends.
“This launch arrives at a critical juncture when the demand for cryptocurrency exposure is on the rise. Market participants are increasingly looking for capital-efficient and versatile options to gain and manage that exposure,” stated Catherine Clay, the Global Head of Derivatives at Cboe.
In a significant milestone for the industry, Cboe became the first U.S. regulated exchange to offer both spot and leveraged derivatives trading on a single platform in November 2023, following its approval from the CFTC to list margined bitcoin and ether (ETH) futures.
