Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, announced on Monday that it aims to launch a new bitcoin (BTC) futures product later this month pending regulatory approval.
This upcoming trading instrument, developed in collaboration with FTSE Russell, will be cash-settled and linked to the XBTF Index, which equals 1/10th the value of the FTSE Bitcoin Index. It is scheduled to settle on the final business day of each month.
If the regulators greenlight Cboe’s application, trading for these futures is set to commence on April 28, the exchange indicated.
Futures are a category of derivatives wherein buyers and sellers agree to exchange an asset at a predetermined price and date in the future. They are widely utilized as a means to hedge against risks, manage exposure, and exploit market trends.
“This launch comes at a crucial time as interest in crypto exposure continues to rise, with market participants increasingly searching for more capital-efficient and flexible avenues to acquire and manage that exposure,” Catherine Clay, Global Head of Derivatives at Cboe, stated.
In November 2023, Cboe made history as the first U.S. regulated exchange to integrate both spot and leveraged derivatives trading on a single platform, having received CFTC approval to list margined bitcoin and ether (ETH) futures.
