Key Takeaways
- Cboe will launch cash-settled Bitcoin index options on Dec 2.
- The options track spot Bitcoin ETFs using the CBTX index.
- Two contract types cater to both institutional and retail traders.
Cboe Global Markets is set to debut cash-settled Bitcoin index options on December 2, a product tied to the Cboe Bitcoin U.S. ETF Index (CBTX).
This index tracks the performance of multiple spot Bitcoin ETFs listed in the U.S., using a market cap-weighted approach to mirror Bitcoin’s spot price.
Options
The new options simplify Bitcoin exposure by settling in cash, removing the need for wallet management or direct Bitcoin holdings.
Designed for both institutional and retail traders, these contracts use a European-style exercise, limiting execution to the expiration date.
Cboe will offer two contract types:
- Standard Index Options for large trades and institutions.
- Mini Index Options (MBTX), at 1/10th the size of standard options, for smaller traders.
FLEX options
FLEX options will also be available, allowing customization of terms like expiration date and strike price.
Rob Hocking, Cboe’s Head of Product Innovation, said:
This launch is a timely and compelling solution for traders to efficiently gain exposure to spot Bitcoin.
The announcement comes as Bitcoin nears $100,000, with heightened demand for Bitcoin-linked financial products.
Cboe aims to bridge traditional and digital finance with this launch, adding to its existing Bitcoin margin futures.
Set to trade on December 2, the cash-settled options offer a streamlined, flexible way to engage with Bitcoin’s price movements.
