Cboe Global Markets, one of many world’s main securities and derivatives exchange networks, introduced the launch Cash-settled options primarily based on a US spot bitcoin (BTC) ETF index.
This new product, obtainable beginning Monday, December 2, shall be traded completely on the Cboe Options Exchange and shall be regulated by the Securities and Exchange Commission (SEC).
The options shall be linked to the newly developed Cboe Bitcoin US ETF Index (CBTX), an index that tracks the efficiency of a basket of spot bitcoin ETFs listed on US exchanges.
This index was designed to precisely mirror bitcoin spot worth actionsas indicated by the corporate in an announcement.
As a cash-settled product, these options get rid of the necessity for bodily custody of bitcoin or the underlying ETFs, offering a less complicated resolution for buyers.
“Our new set of options offers a timely and attractive solution for traders to efficiently gain exposure to bitcoin spot,” mentioned Rob Hocking, Global Head of Product Innovation at Cboe. Adds the chief: “We believe that the unique benefits of cash settlement, combined with the availability of different index sizes and FLEX options, will provide clients with greater flexibility in their trading strategies.”
Cboe can even launch, together with the usual options, mini contracts on the Cboe Bitcoin US ETF Index (MBTX), with a face worth equal to 1/10 of the usual options. These contracts search to attraction to smaller portfolios and permit for extra detailed danger administration methods. Additionally, FLEX options shall be obtainable, permitting merchants to customise phrases corresponding to strike worth, strike model, and expiration date.
The product shall be Aimed at each institutional and retail buyers. According to Cboe, the options shall be exercisable solely at expiration and can enable market members to “capitalize on price movements, manage risks and express their views on the market.”
To perceive the magnitude of this information, it’s essential to know that Cboe Global Markets is likely one of the primary networks of inventory exchanges and derivatives worldwide.
Founded in 1973 because the Chicago Board Options Exchange, it has expanded its operations all through North America, Europe and Asia-Pacific. The firm affords platforms for buying and selling options, futures, shares and currencies, working exchanges within the United States, Canada, the Netherlands and Australia. In Europe, Cboe is the biggest exchange by buying and selling quantity, the second largest in Canada and the third largest within the United States.
In monetary phrases, Cboe reported income of $532 million within the third quarter of 2024, representing a rise of 11% in contrast to the identical interval final 12 months. This development was pushed by a rise in options and futures buying and selling, reflecting the robustness and attain of its providers in international monetary markets.
As CriptoNoticias reported, This week the SEC authorised options on the BlackRock and Grayscale bitcoin ETF. According to investor Joe Consorti, this positions bitcoin within the “big leagues” of the monetary markets.
The worth of BTC accompanies this excellent news and on the time of this publication is approaching $100,000.
