Cboe set to launch cash-settled Bitcoin ETF options as crypto booms

By David Pan

  Cboe Global Markets Inc. said it is set to list the first cash-settled index options related to the spot price of Bitcoin, marking the latest addition of cryptocurrency-related securities to traditional exchanges.  

The options will be launched on Dec. 2 and will be based on the Cboe Bitcoin U.S. ETF Index, which tracks a basket of spot-Bitcoin exchange-traded funds listed in the US, Cboe said in a statement on Friday.  

The move follows the listing of spot-Bitcoin ETF options on Nasdaq earlier this week, which allow US investors to use derivatives to bet on the direction of the largest digital asset in the world or hedge their positions.  

 

Crypto derivatives such as options and futures have been largely traded outside the US given regulations related to such contracts within the country. Binance and Deribit, which are both based outside the US, have been the largest crypto options and futures trading platforms, allowing traders to lever up their positions.  

However, growing demand and President-elect Donald Trump’s pro-crypto stance have prompted some of the largest US-based marketplaces to cut their teeth in the nascent business. CME has seen a spike in the open interest in its Bitcoin futures contracts, eroding Binance’s market share, while over-the-counter options trading has emerged to be one way for the US institutional investors to hedge or amplify their strategies.  

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