Cboe Digital Plans Bitcoin Futures Launch with FTSE Russell Collaboration
Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, announced on Monday that it intends to launch a new Bitcoin (BTC) futures product later this month, pending regulatory approval.
The futures contract, created in partnership with FTSE Russell, will be cash-settled and tied to the XBTF Index, which tracks 1/10th of the value of the FTSE Bitcoin Index. The contracts will settle on the last business day of every month.
If the regulators approve, trading for the new futures contracts will begin on April 28.
Bitcoin futures are derivative contracts where the buyer and seller agree to exchange Bitcoin at a fixed price on a future date. They are commonly used to hedge risk or speculate on price fluctuations.
“We’re launching at a key moment, as the demand for exposure to cryptocurrency continues to rise. Investors are increasingly looking for more efficient and versatile ways to gain exposure to digital assets,” said Catherine Clay, Global Head of Derivatives at Cboe.
In November 2023, Cboe became the first U.S. regulated exchange to provide both spot and leveraged derivatives trading for Bitcoin and Ether (ETH) after receiving approval from the CFTC to list margined Bitcoin and Ether futures.
