Cboe to Launch Bitcoin and Ether Margin Futures Options Products

Cboe is planning to launch the first cash-settled index options related to the price of spot Bitcoin beginning Monday, December 2. These options will be SEC-regulated and based on the new Cboe Bitcoin U.S. ETF Index (Ticker: CBTX), the market's first U.S. spot Bitcoin ETF index: a modified market cap-weighted index designed to track the performance of a basket of spot Bitcoin ETFs listed in the United States.

Cboe to Launch Cash-Settled Index Options Linked to Spot Bitcoin Price

Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and exchange services, today announced plans to launch the first cash-settled index options related to the price of spot Bitcoin beginning Monday, December 2.

These options will be SEC-regulated and based on the new Cboe Bitcoin U.S. ETF Index (Ticker: CBTX), the market’s first U.S. spot Bitcoin ETF index: a modified market cap-weighted index designed to track the performance of a basket of spot Bitcoin ETFs listed in the United States.

Cboe Bitcoin U.S. ETF Index is also designed to correlate to the price of spot Bitcoin, making it a representative measure of the digital asset.

These new Cboe Bitcoin U.S. ETF Index options will provide market participants with exposure to spot Bitcoin ETFs – and indirectly to Bitcoin itself – through a transparent and efficient financial instrument. These options enable participants to capitalize on price movements, manage risk, and express their market views.

The contracts are cash-settled, with positions closed in cash at expiration, avoiding the complexities of physically delivering Bitcoin ETFs. They also feature European-style exercise, meaning they can only be exercised on the expiration date, reducing early assignment risks.

Cboe will also introduce Cboe Mini Bitcoin U.S. ETF Index options (Ticker: MBTX) at launch. With a notional value 1/10th of the standard options, these mini contracts are designed to provide more granularity and flexibility in managing basis risk and suit portfolios of different sizes.

Additionally, Cboe plans to offer cash-settled FLEX options on both the standard and mini indexes. FLEX options allow traders to customize terms like exercise price, style, and expiration date, potentially enabling larger positions than standard options contracts allow.

This new suite of options further expands Cboe’s digital assets derivatives offerings, which already includes cash-settled Bitcoin and Ether margin futures listed and traded on Cboe Digital Exchange that are expected to transition to Cboe Futures Exchange in the first half of 2025, pending regulatory review.

Moreover, Cboe’s BZX Equities Exchange is a leading venue for spot U.S. crypto ETFs, listing the majority market share of spot Bitcoin ETFs and spot Ether ETFs available for trading in the U.S.

Commenting on the launch, Rob Hocking, Global Head of Product Innovation at Cboe, said: “Our new suite of options on the Cboe Bitcoin U.S. ETF Index offers a timely and compelling solution for traders to efficiently gain exposure to spot Bitcoin. We expect the unique benefits of cash settlement, combined with the availability of various index sizes and FLEX options, will give customers more flexibility in their trading strategies. Our index options offer a unique value proposition that we believe will appeal to both institutional participants and retail traders alike, who are looking to capitalize on or hedge against Bitcoin’s price movements without directly holding the digital asset.”

Adam Inzirillo, Global Head of Data and Access Solutions at Cboe, said: “This latest initiative showcases the strength of Cboe’s exchange ecosystem – from listing and trading spot Bitcoin ETFs on our U.S. equities exchange, to generating data that drives index creation, and now launching innovative tradable products like Cboe Bitcoin U.S. ETF Index Options. Our ability to leverage the full breadth of our platform to continually bring new solutions to market is a key differentiator for Cboe and a major benefit to our customers.”