Cboe Digital to Launch New Bitcoin Futures Product in Partnership with FTSE Russell
Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, is preparing to launch a new Bitcoin (BTC) futures product later this month, pending regulatory approval, the exchange announced on Monday.
In collaboration with FTSE Russell, the new futures contract will be cash-settled and tied to the XBTF Index, which represents 1/10th the value of the FTSE Bitcoin Index. These futures will settle on the last business day of each month.
Subject to regulatory approval, the futures contracts are set to begin trading on April 28.
Bitcoin futures are derivative contracts in which buyers and sellers agree to trade Bitcoin at a predetermined price and date in the future. Futures are widely used for risk management and to take advantage of market trends and movements.
“This launch arrives at a critical time as demand for crypto exposure continues to rise, and market participants seek more capital-efficient and flexible ways to gain and manage that exposure,” said Catherine Clay, Global Head of Derivatives at Cboe, in a statement.
Cboe made history in November 2023 when it became the first U.S. regulated exchange to offer both spot and leveraged derivatives trading for Bitcoin and Ether (ETH) on a single platform, after receiving approval from the CFTC to list margined Bitcoin and Ether futures.
