Cboe plans to introduce the first index options with cash settlements for Bitcoin ETFs. Options are based upon the Cboe Bitcoin U.S. ETF Index which is intended to mirror the performance spot Bitcoin ETFs on U.S. stock exchanges. These options will be launched on December 2nd, 2024 and exclusively traded through the Cboe Options Exchange.
Cboe’s press releaseThe modified market cap weighted index was designed to follow the performance of the basket of U.S.-listed spot Bitcoin ETFs. It’s also designed to track the spot Bitcoin prices, so it can be considered a good measure for the asset. The index options are cash settled. The positions will be closed out in cash, which eliminates the complexity of physical delivery.
“Our new suite of options on the Cboe Bitcoin U.S. ETF Index offers a timely and compelling solution for traders to efficiently gain exposure to spot Bitcoin,” Rob Hocking Global Head Product Innovation, Cboe. “We expect the unique benefits of cash-settlement, combined with the availability of various index sizes and FLEX options, will give customers more flexibility in their trading strategies. Our index options offer a unique value proposition that we believe will appeal to both institutional participants and retail traders alike, who are looking to capitalize on or hedge against Bitcoin’s price movements without directly holding the asset.”
Cboe Announces Massive Bitcoin ETF, Captures BTC Growth
Asset management networks and firms are looking for ways to profit from Bitcoin’s explosive growth. Since their launch in early 2018, Spot Bitcoin ETFs has seen great success. Bitcoin ETFs should gain more popularity now that Bitcoin has reached $100k. Cboe’s cash-settled Index will be the world’s first and most innovative Bitcoin index.
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Adam Inzirillo Global Head of Data and Access Solutions, Cboe said: “This latest initiative showcases the strength of Cboe’s exchange ecosystem – from listing and trading spot Bitcoin ETFs on our U.S. equities exchange, to generating data that drives index creation, and now launching innovative tradable products like Cboe Bitcoin U.S. ETF Index Options. Our ability to leverage the full breadth of our platform to continually bring new solutions to market is a key differentiator for Cboe and a major benefit to our customers.”
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Source: watcher.guru
