Cboe Introduces New Bitcoin (BTC) Index Futures Based on FTSE

Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, is aiming to introduce a new bitcoin (BTC) futures product later this month, pending regulatory approval, as announced on Monday. This new trading option, developed in collaboration with FTSE Russell, will be cash-settled and linked to the XBTF Index, reflecting 1/10th the value of the FTSE Bitcoin Index. The settlements will occur on the last business day of each month. If regulators greenlight Cboe’s application, trading in these futures could commence on April 28. Futures are a type of derivative in which the buyer and seller agree to exchange an asset at a predetermined price on a specified date in the future. They serve as a popular means for hedging and managing risk, as well as for capitalizing on market trends and behaviors. “This launch comes at a pivotal time as demand for crypto exposure continues to grow and market participants are increasingly seeking more capital-efficient and versatile ways to gain and manage that exposure,” remarked Catherine Clay, Global Head of Derivatives at Cboe, in a statement. In November 2023, Cboe achieved a notable milestone by becoming the first U.S. regulated exchange to provide both spot and leveraged derivatives trading on a single platform after receiving the necessary approval from the CFTC to list margined bitcoin and ether (ETH) futures.