Cboe partners with FTSE Russell to introduce a new Bitcoin futures product.

Cboe Digital to Introduce Bitcoin Futures Product with FTSE Russell Collaboration

Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, is poised to introduce a new Bitcoin (BTC) futures product later this month, pending regulatory approval, the exchange announced on Monday.

The new offering, developed in partnership with FTSE Russell, will be cash-settled and linked to the XBTF Index, which tracks 1/10th of the value of the FTSE Bitcoin Index. These futures will settle on the final business day of each month.

If regulatory approval is granted, the futures contracts will begin trading on April 28.

Bitcoin futures are derivative contracts in which investors agree to buy or sell Bitcoin at a fixed price on a future date. These instruments are commonly used for hedging risk, speculating on price movements, or capitalizing on market trends.

“The timing of this launch is crucial as the demand for crypto exposure continues to increase. Investors are looking for more efficient and adaptable methods to manage their crypto portfolios,” stated Catherine Clay, Global Head of Derivatives at Cboe.

In November 2023, Cboe became the first U.S. regulated exchange to offer both spot and leveraged derivatives trading for Bitcoin and Ether (ETH) after receiving approval from the CFTC to list margined Bitcoin and Ether futures.

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