Cboe Global Markets, Inc. (Cboe: CBOE), the world’s derivatives and securities exchange network, announced it has begun to offer trading in its new Cboe FTSE Bitcoin Index futures.
These cash-settled futures, reportedly based on the FTSE Bitcoin Reduced Value Index (Ticker: XBTF), are the latest addition to Cboe’s suite of digital asset derivatives.
Listed on Cboe Futures Exchange, LLC (CFE), the new XBTF futures are expected to provide market participants “with another versatile tool to express views on bitcoin or manage risk.”
XBTF futures are cash-settled contracts, “meaning positions are closed in cash at expiration, removing the complexities of physically delivering bitcoin.”
Catherine Clay, Global Head of Derivatives at Cboe said:
“As customer demand for crypto-based derivatives continues to rise, Cboe is committed to building a well-rounded ecosystem to help facilitate more efficient, flexible access to bitcoin exposure and risk management. Our launch of the new Cboe FTSE Bitcoin Index Futures adds a key building block to our crypto derivatives toolkit — offering market participants another versatile tool to gain and seek to hedge bitcoin exposure, all within a regulated and transparent marketplace, with centralized clearing.”
The introduction of XBTF futures follows Cboe’s earlier launch of cash-settled options on the Cboe Bitcoin U.S. ETF Index (Tickers: CBTX and MBTX), creating “a complementary suite of bitcoin-related index derivatives products.”
Cboe expects each product can be a useful tool for “managing bitcoin volatility on its own, or both products can be used in tandem to execute more advanced trading strategies.”
Additionally, XBTF futures are cleared “through OCC, which also clears CBTX and MBTX options.”
Commenting on the launch, Barak Capital said:
“As investor participation in digital assets has grown and become more institutionalized, the ability to access efficient and stable markets is paramount. As a leading market maker, the Barak Capital group has been an established liquidity provider for Cboe’s markets for years. We look forward to acting as a liquidity provider in Cboe FTSE Bitcoin Index futures and to supporting Cboe’s market in this product.”
Tom Chlada, Chief Operating Officer at Prime Trading, LLC, said:
“Prime Trading, LLC is excited to support Cboe’s continued expansion of its crypto derivatives product suite and to act as a liquidity provider in the new XBTF futures. We are strongly aligned with Cboe’s efforts to grow the crypto derivatives market and look forward to working with Cboe to provide its customers with a best-in-class trading experience.”
XBTF futures are reportedly “settled in the afternoon (P.M) on the last business day of each month.”
They are based on the XBTF Index – developed by FTSE Russell in collaboration with Digital Asset Research – which “represents 1/10th the value of the FTSE Bitcoin Index.”
As covered, Cboe Global Markets, the derivatives and securities exchange network, delivers “trading, clearing, and investment solutions to people around the world.”
Cboe provides trading solutions and products in “multiple asset classes, including equities, derivatives, and FX across North America, Europe, and Asia Pacific. “
