In a press release on April 7, a new futures contract, known as CBOE FTSE Bitcoin (BTC) index futures, is expected to begin trading on April 28th. The FTSE Bitcoin Index serves as the basis for futures with cash, reducing it by a third of its value.
This product trades under an XBTF ticker and settles down on the last business day of each month. Traders aim to provide greater control over their exposure to Bitcoin without requiring them to hold their actual assets. Cboe says the new FTSE Bitcoin Index Futures Product will complement recently launched options related to Bitcoin Exchange Sales Funds.
Together, these products aim to provide investors with a wider range of tools to hedge or build crypto-related strategies. Cboe’s global head of derivatives, Catherine Link Clay, has welcomed the launch as a useful addition to the Bitcoin product ecosystem. She emphasized providing traders with more tools to navigate the digital assets ecosystem.
“The launch is at a critical time as the demand for crypto exposure continues to grow and market participants are looking for a more capital-efficient, multi-purpose way to acquire and manage that exposure.”
Katherine Clay, world director of derivatives at Cboe
The index used in New Futures products was developed by FTSE Russell in collaboration with Digital Asset Research. It is designed to track Bitcoin prices using strict standards that include exchanges and data sources, ensuring that the index reflects the investable market.
The move coincides with CBOE’s growing commitment to digital asset products, including the list of Spot Bitcoin and Ethereum (ETH) ETFs, as well as the recent launch of Bitcoin ETF index options in both standard and mini sizes. Cboe saw record marches and registered the highest volume ever, with an average daily option contract of 18.8 million.
Additionally, the S&P 500 contract and its own index option reached a new monthly average volume record of 3.9 million contracts. Cboe also set a one-day SPX transaction record for 4.8 million contracts on March 10th.
