As a seasoned analyst with a keen eye for market trends and a heart full of experience, I find this development by Cboe Global Markets incredibly intriguing. The introduction of cash-settled index options tracking the price of spot Bitcoin is a significant stride forward, not just for the crypto space, but for traditional finance as well.
Starting from December 2nd, Cboe Global Markets plans to debut a new kind of option contracts that are cash-settled and tied to the value of Bitcoin spot prices. This index, called the Cboe Bitcoin U.S. ETF Index (CBTX), will mirror the performance of Bitcoin exchange-traded funds available in the United States. Essentially, it will track these U.S.-listed ETFs that invest in Bitcoin.
NEWS ANNOUNCEMENT: Beginning December 2, Cboe will introduce the first cash-settled options product tied to the price of Bitcoin in its spot market.
— Cboe (@CBOE) November 22, 2024
Through a partnership between Cboe Labs and Cboe Global Indices called CBTX, as stated in a press release, they plan to link Bitcoin’s price. This arrangement offers investors an indirect way to invest in the cryptocurrency by means of a collection of ETFs. The index options will be cash-settled, implying no actual delivery of ETFs will take place.
Cboe is additionally providing mini options, known as MBTX, which are equivalent to 10% of the standard option’s value compared to CBTX. Furthermore, it offers cash-settled FLEX options for both CBTX and MBTX, granting traders the flexibility to adjust contract terms according to their preferences.
According to Rob Hocking, Cboe’s Global Head of Product Innovation, their fresh selection of options linked to the Cboe Bitcoin U.S. ETF Index provides a relevant and enticing method for traders to swiftly access direct exposure to the Bitcoin market.
In a move to broaden its Bitcoin operations, Cboe has introduced cash-settled contracts for Bitcoin and Ether margin futures on the Cboe Digital Exchange. These are slated to shift to the Cboe Futures Exchange by 2025. Moreover, the Cboe BZX Equities Exchange stands as a prime platform for U.S. crypto ETFs in the spot market.
Also Read : SEC Approves Options Trading for Bitcoin ETFs on NYSE & CBOE
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2024-11-22 22:28