Highlights
- Cboe to launch cash settled Options on Bitcoin ETFs in December
- As the first of its kind, the products is designed to safeguard against physical Bitcoin holding
- Spot Bitcoin and crypto ETF products now gaining more traction in the ecosystem
Cboe Global Markets has announced its plans to launch the industry’s first cash-settled Options offering on spot Bitcoin ETF products. The firm noted that these cash-settled products are based on the Cboe Bitcoin US ETF Index (CBTX). Per its update, this offering will officially go live on December 2.
Spot Bitcoin ETF And Cboe’s Cash-Settled Product
The Cboe cash-settled Options product is an evolution of spot BTC ETFs. As announced, the Cboe Bitcoin US ETF Index will help investors bet on the underlying product hosted on trading platforms in the US. Despite its cash-settled feature, it will be a true tracker of the Bitcoin price.
This new cash-settled product comes following the launch of spot Bitcoin ETF options on the Nasdaq recently.
At the time of settlement, the Cboe index options will close in fiat currencies. This will remove the complications like volatility and risk of theft associated with storing Bitcoin directly. Another feature attributed to this products include the European-style exercise. As noted, this imply that the product are only excisable on the expiration, effectively removing the risks of early assignment.
NEWS: Cboe to Launch the First Cash-Settled Options Product Related to Spot Bitcoin, Beginning Monday, December 2
Read the press release: https://t.co/e3WkjBpQRg
🔹 The first cash-settled index #options related to the price of spot Bitcoin🔹 Options are based on the new Cboe… pic.twitter.com/jduITZq8pQ
— Cboe (@CBOE) November 22, 2024
In addition to the CBTX, Cboe plans to offer extra granularity to the adoption of spot Bitcoin ETF products. The derivatives exchange platform plans to achieve this through the Cboe Mini Bitcoin US ETF Index options (MBTX). The exchange considers its Options product innovation as one that is essential to crypto ETF investors.
More Crypto Investment Channel For Traditional Investors
The emergence of crypto ETF products has created an indirect avenue for mainstream investors to gain exposure to Bitcoin and Ethereum.
In order to properly mirror the systems of the broader financial ecosystem, analysts consider the approval of Options on Bitcoin as the last major hurdle to cross for the coin. The record volume scored by the Bitcoin ETF market in recent days underscores the broader adoption of this options product.
Beyond Bitcoin, Options products on spot Ethereum ETF is yet to get the greenlight from regulators and clamor for XRP, Litecoin and Solana ETF products are also growing at the moment.
CoinGape