Cboe Set to Debut New Bitcoin Futures With FTSE Russell

Cboe Digital, the crypto arm of the Chicago Board of Options Exchange, is hoping to roll out a new bitcoin (BTC) futures product later this month if approved by regulators, the exchange said on Monday.

The new trading vehicle, in partnership with FTSE Russell, will be cash-settled and based on the XBTF Index, which represents 1/10th the value of the FTSE Bitcoin Index. It will settle on the last business day of each month.

If regulators approve Cboe’s application, the futures would begin trading on April 28, it said.

Futures are a type of derivatives where the buyer and seller agree to trade an asset at a fixed price and date in the future. They are a popular vehicle to hedge and manage risk and capitalize on trends and market behavior.

“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,” said Catherine Clay, Global Head of Derivatives at Cboe, in a statement.

In November 2023, Cboe became the first U.S. regulated exchange to offer both spot and leveraged derivatives trading on a single platform after it received approval from the CFTC to list margined bitcoin and ether (ETH) futures.