Cboe announces December debut of spot bitcoin ETF index options

Cboe Global Markets has announced plans to launch the first cash-settled index options related to the spot price of bitcoin.

Scheduled to launch on Monday, Dec. 2, these options will be based on the newly developed Cboe Bitcoin US ETF Index, designed to track the performance of spot bitcoin ETFs listed on U.S. exchanges.

According to Cboe, the options will expose users to spot bitcoin ETFs, offering an indirect way to engage with bitcoin. These index options will be cash-settled, meaning positions are closed in cash at expiration, removing the complexities of physically delivering bitcoin ETFs. In addition to cash settlement, the options will offer European-style exercise, meaning they are exercisable only on the expiration date.

"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 capitalise on or hedge against bitcoin’s price movements without directly holding the asset," said Cboe Global Head of Product Innovation Rob Hocking.

The exchange will also roll out Cboe Mini Bitcoin U.S. ETF Index options (MBTX), featuring a notional value one-tenth the size of standard options.

This launch broadens Cboe’s digital asset derivatives portfolio, which already includes cash-settled bitcoin and ether margin futures traded on the Cboe Digital Exchange.