Cboe Global Markets has announced plans to launch the first cash-settled index options related to the price of spot Bitcoin.
The product will be available beginning 2 December and exclusively listed and traded on Cboe Options Exchange.
The options will be SEC-regulated and based on the new Cboe Bitcoin US ETF Index.
“Our new suite of options on the Cboe Bitcoin US ETF Index offers a timely and compelling solution for traders to efficiently gain exposure to spot Bitcoin,” said Rob Hocking, global head of product innovation at Cboe.
“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 capitalise on or hedge against Bitcoin’s price movements without directly holding the asset.”
Options on the Cboe Bitcoin US ETF Index means that users gain exposure to spot Bitcoin ETFs – and indirectly to Bitcoin itself.
As well as cash settlement, these index options will offer European-style exercise, exercisable only on the expiration date and eliminating the risks of early assignment.
Cboe also plans to offer Cboe Mini Bitcoin US ETF Index options, as well as cash-settled FLEX options on both the Cboe Bitcoin US ETF Index and the Cboe Mini Bitcoin US ETF Index.
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 US equities exchange, to generating data that drives index creation, and now launching innovative tradable products like Cboe Bitcoin US 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.”