Cboe Global Markets is preparing to launch cash-settled index options tied to the spot Bitcoin price. On December 2, the exchange will introduce the Cboe Bitcoin US ETF Index, providing a new method for investors to access Bitcoin exposure through options.
The new offering has the potential to attract more participation in digital assets, as both institutional and retail investors will be able to engage with Bitcoin’s price movements.
The Cboe Bitcoin ETF index options will track the performance of a group of spot Bitcoin ETFs listed on US exchanges. It adopts a modified market cap-weighted structure to closely follow the spot Bitcoin price, while eliminating the complexities associated with physically settling Bitcoin.
Instead of physically delivering Bitcoin ETFs, which can be challenging for investors, the options will be cash-settled. This means that the contracts can be closed out in cash when they expire. According to reports, this feature is expected to be appealing to many investors.
Rob Hocking, the Global Head of Product Innovation at Cboe, commented on the new offering by stating, “Our new suite of options on the Cboe Bitcoin US ETF Index offers a timely and attractive solution for traders looking to gain exposure to spot Bitcoin efficiently.”
