Cboe Global Markets is set to launch a new Bitcoin futures product later this month, pending regulatory approval.
According to an announcement made on April 7, the exchange has revealed that the new futures contract, known as the Cboe FTSE Bitcoin (BTC) Index Futures, will commence trading on April 28. This product will be based on the FTSE Bitcoin Index and will feature contracts valued at one-tenth of the index.
Trading under the ticker XBTF, the product will settle on the last business day of each month. It aims to provide traders more control over their Bitcoin exposure without necessitating direct ownership of the cryptocurrency. The new FTSE Bitcoin Index Futures are designed to complement the recently introduced options linked to Bitcoin exchange-traded funds.
Together, these offerings are designed to equip investors with a wider array of tools for hedging or developing crypto-related strategies. Cboe’s global head of derivatives, Catherine Clay, praised this launch as a significant addition to their ecosystem of Bitcoin products, noting that it will further empower traders in navigating the realm of digital assets.
“This launch is timely, as the appetite for crypto exposure continues to rise, and market participants are increasingly looking for more capital-efficient and adaptable ways to achieve and manage that exposure.”
Catherine Clay, Global head of derivatives
The index for the new futures product has been developed by FTSE Russell in collaboration with Digital Asset Research. It is designed to track Bitcoin’s price using rigorous criteria for the exchanges and data sources included, ensuring that the index accurately reflects the investable market.
This initiative aligns with Cboe’s ongoing dedication to digital asset products, including the listing of spot Bitcoin and Ethereum (ETH) ETFs, as well as the recent introduction of Bitcoin ETF index options available in both standard and mini sizes. Cboe reported a record-breaking March, achieving its highest trading volume ever with an average of 18.8 million options contracts traded daily.
Additionally, its S&P 500 contracts and proprietary index options reached a new monthly average daily volume record of 3.9 million contracts, and Cboe established a single-day SPX trading record of 4.8 million contracts on March 10.