Cboe Launches New Bitcoin Futures Contracts XBTF

CBOE Global Markets has introduced new Bitcoin futures contracts, known as Cboe FTSE Bitcoin Index futures (XBTF), available on its Cboe Futures Exchange. This launch follows the earlier introduction of Bitcoin options products (CBTX and MBTX), providing a variety of tools for managing Bitcoin price movements. These products can be used individually for simpler trades or in combination for more complex strategies. The XBTF futures, similar to the Bitcoin options, are cleared through OCC.

Cboe's expanding range of crypto products now includes spot bitcoin ETFs and bitcoin ETF index options, in addition to their new bitcoin futures. The BTC index futures are cash-settled, eliminating the need for physically delivering Bitcoin. These XBTF futures will settle on the last business day of each month in the afternoon.

Catherine Clay, Global Head of Derivatives at Cboe, emphasized the company's commitment to building a comprehensive ecosystem to facilitate efficient and flexible access to bitcoin exposure and risk management. She highlighted that the new Bitcoin futures are a crucial addition to their crypto offerings, allowing investors to gain exposure to or hedge Bitcoin in a regulated, transparent environment with centralized clearing.

Cboe is also expanding its digital assets by listing U.S. spot bitcoin and ether ETFs. Its new cash-settled Bitcoin options have helped create ETFs that provide investors with Bitcoin exposure while limiting risk. Barak Capital, a leading market maker, noted the growing demand for stable and efficient markets as digital asset investments become more institutionalized. They are prepared to provide liquidity to Cboe’s FTSE Bitcoin Index futures.

Cboe Global Markets has introduced a new suite of Bitcoin futures, the Cboe Bitcoin Futures (XBTF), designed to offer greater flexibility to crypto traders. These futures contracts are cash-settled, meaning they are settled in cash at expiration, which eliminates the complexities associated with physically delivering Bitcoin. This feature is particularly appealing to portfolios of all sizes, as it provides a straightforward and efficient way to manage positions.

The XBTF futures are exclusively listed on the Cboe Futures Exchange, LLC (CFE), and are expected to serve as a versatile tool for market participants. These contracts settle in the afternoon on the last business day of a month, providing traders with a predictable and consistent settlement schedule. This new offering is part of Cboe's expanding suite of digital asset products, which aims to meet the rising demand for crypto derivatives.

The introduction of XBTF futures is a strategic move by Cboe to provide market participants with another means to express their views on Bitcoin or manage risk. The cash-settled nature of these contracts makes them an attractive option for traders who prefer the simplicity and liquidity of cash settlements over the logistical challenges of physical delivery. This innovation is likely to appeal to a broad range of investors, from individual traders to institutional portfolios, seeking to diversify their exposure to the crypto market.

The launch of XBTF futures underscores Cboe's commitment to innovation in the digital asset space. By offering a new tool for traders, Cboe is positioning itself as a leader in providing flexible and efficient solutions for managing crypto investments. The cash-settled contracts based on the FTSE Bitcoin Reduced Value Index (Ticker: XBTF) are the latest addition to Cboe's growing suite of digital asset products, reflecting the company's dedication to meeting the evolving needs of the market.