The Chicago Board Options Exchange has unveiled plans for a new Bitcoin futures derivative product.
As per an announcement on April 7, this exchange intends to introduce the FTSE Bitcoin Index futures on April 28, pending regulatory approval. This new offering is based on the VanEck Bitcoin Strategy ETF (XBTF).
The product will be cash-settled and will represent one-tenth of the FTSE Bitcoin Index value, with settlements occurring on the last business day of each month.
This launch marks the first product stemming from the exchange’s collaboration with FTSE Russell, the index arm of the London Stock Exchange Group. The new derivative is designed to complement its recent Bitcoin options offerings, which include Bitcoin US ETF Index Options (CBTX) and Bitcoin US ETF Index Options (MBTX). Catherine Clay, the global head of derivatives at the exchange, commented:
“This launch arrives at a crucial moment as the appetite for crypto investments continues to rise, and market participants are increasingly looking for more efficient ways to access and manage that exposure.”
Related: Largest ever CME gap has just printed in Bitcoin futures
Continued Development in Crypto Products
The exchange is a significant player in the global financial arena, with a rich history dating back to 1973. It also stands as a provider of Bitcoin (BTC) products, having introduced its first futures contracts on December 10, 2017.
Continuing to push the envelope within traditional markets, the exchange announced in early February its intention to implement a 24-hour trading day, but only on weekdays, further bridging the gap between cryptocurrency and traditional finance.
Related: Exchange files updated applications to list Bitcoin, Ethereum options in the US
Bitcoin Futures Remain Relevant
In spite of the advent of Bitcoin exchange-traded funds (ETFs), Bitcoin futures continue to be actively traded and remain a hot topic among market stakeholders. In late March, leveraged Bitcoin futures caused a significant open interest wipeout worth $10 billion.
New developments in this area are still unfolding. In March, a leading exchange announced intentions to provide 24/7 trading for Bitcoin and Ether futures for US residents.
Additionally, the largest exchange group in Singapore reportedly plans to launch Bitcoin perpetual futures in the latter half of 2025.
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