Cboe set to launch first cash-settled options related to spot Bitcoin

Key Takeaways

Cboe’s new Bitcoin ETF index options launch December 2, offering cash settlement and European-style exercise.
The Cboe Bitcoin US ETF Index tracks the performance of US-listed spot Bitcoin ETFs and offers exposure to Bitcoin’s price movements.

Cboe Global Markets has announced plans to introduce the first cash-settled index options tied to the price of spot Bitcoin.

Launching on December 2, these options will be exclusively listed and traded on the Cboe Options Exchange under the ticker CBTX.

The options are based on the newly developed Cboe Bitcoin US ETF Index, an index designed to track the performance of US-listed spot Bitcoin ETFs.

Developed by Cboe Labs and Cboe Global Indices, this index serves as a representative measure of Bitcoin’s price, providing market participants with exposure to Bitcoin ETFs and indirectly to Bitcoin itself.

The exchange will also introduce Cboe Mini Bitcoin US ETF Index options (MBTX), sized at one-tenth of the standard options’ notional value.

Both standard and mini options will feature European-style exercise, limiting execution to the expiration date.

“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.

The launch expands Cboe’s digital assets derivatives offerings, which include cash-settled Bitcoin and Ether margin futures on Cboe Digital Exchange.

These futures are expected to move to Cboe Futures Exchange in the first half of 2025, pending regulatory review.