Cboe Digital is set to launch a new Bitcoin futures product linked to the FTSE Russell Index, capitalizing on growing demand for regulated crypto trading tools.
The launch comes at a pivotal moment as demand for crypto exposure grows.
Cboe Digital plans to launch a new Bitcoin futures product on April 28, pending regulatory approval. The cash-settled contract will be based on the XBTF Index, which tracks 1/10th the value of the ‘FTSE Bitcoin Index’.
Bitcoin is a decentralized digital currency created in 2008 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
It operates independently of central banks and governments, allowing peer-to-peer transactions without intermediaries.
Bitcoin's value is determined by supply and demand on cryptocurrency exchanges, with its price fluctuating significantly over time.
As of 2022, there are approximately 18.9 million Bitcoins in circulation, with a total market capitalization of over $1 trillion.
Key Features of the New Product
- Cash-settled: The new trading vehicle is a ‘cash-settled’ contract.
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XBTF Index: It will be based on the XBTF Index, representing 1/10th the value of the ‘FTSE Bitcoin Index’.
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Settlement Period: The futures will settle on the last business day of each month.
Institutional demand for regulated crypto trading tools continues to grow. Cboe Digital is hoping to capitalize on this trend with its new product.
Catherine Clay, Global Head of Derivatives at Cboe, stated that ‘This launch comes at a pivotal time as demand for crypto exposure continues to grow and market participants are increasingly seeking more capital-efficient and versatile ways to gain and manage that exposure.’.
In November 2023, Cboe became the first U.S. regulated exchange to offer both spot and leveraged derivatives trading on a single platform after receiving approval from the CFTC to list margined bitcoin and ether futures.
Futures are a type of derivative where the buyer and seller agree to trade an asset at a fixed price and date in the future. They are a popular vehicle for hedging and managing risk, as well as capitalizing on trends and market behavior.
- coindesk.com | Cboe Set to Debut New Bitcoin Futures With FTSE Russell
