Cboe Futures Exchange Debuts Cash-Settled Bitcoin Index Futures

Cboe Global Markets, which stands as the premier derivatives and securities exchange group globally, has started providing trading for its newly launched Cboe FTSE Bitcoin Index futures. According to the company, these new cash-settled futures contracts will utilize the FTSE Bitcoin Reduced Value Index (XBTF) as their benchmark.

Cboe noted The XBTF futures are finalized in the afternoon on the final business day of every month. The company mentioned that these new futures contracts are tied to the XBTF Index, reflecting 1/10th the value of the FTSE Bitcoin Index.

Cboe introduces cash-settled Bitcoin index futures.

Cboe Global Markets has introduced new cash futures tied to the FTSE Bitcoin Reduced Value Index, marking another step in expanding their range of digital asset derivatives. The company announced the initiation of trading for these Cboe FTSE Bitcoin Index futures, available solely through them. Cboe Futures Exchange, LLC (CFE).

The company indicated that the introduction of XBTF futures aims to offer market participants an additional flexible instrument for either expressing their opinions on BTC or hedging risks. Cboe recognized that these XBTF futures will be settled in cash upon expiration, eliminating the necessity for physical delivery. This approach was presented as one that simplifies the process by avoiding the intricacies associated with directly handling digital assets.

As customers increasingly seek out cryptocurrency-related financial products, Cboe remains dedicated to developing a comprehensive environment aimed at enabling smoother and more versatile ways to gain exposure to Bitcoin as well as manage associated risks.

– Catherine Clay Global Head of Derivatives at Cboe.

Clay mentioned that the introduction of the new Cboe FTSE Bitcoin Index Futures provides an essential addition to the company’s suite of cryptocurrency derivative products. According to her, this move introduces another flexible option for market players to either acquire exposure to BTC or attempt to mitigate their risks associated with it, all conducted in a controlled environment featuring centralized clearing and clear transparency.

Cboe progresses with its cash-settled options offerings.

Following its previous introduction of cash-settled options on the Cboe Bitcoin U.S. ETF Index (CBTX and MBTX), the futures exchange has now launched XBTF futures. The company contends that these two releases form a complementary set of financial instruments. Bitcoin -related derivatives products.

The firm believes that each offering will serve as an effective instrument for handling BTC volatility independently. Additionally, Cboe has expressed hope that these two products could work together to facilitate more complex trading tactics. They highlighted that XBTF futures undergo clearing via OCC, the same entity responsible for clearing processes of CBTX and MBTX.

Barak Capital remarked on the debut, emphasizing that having access to effective and reliable marketplaces is crucial since involvement from investors in digital currencies has increased and turned more professional. They also mentioned their long-standing role as a liquidity supplier for Cboe’s platforms.

Barak Capital expressed enthusiasm about serving as a liquidity provider for Cboe FTSE Bitcoin Index futures and pledged support for trading activities related to this product within Cboe’s marketplace.

Tom Chlada, the Chief Operating Officer at Prime Trading, LLC, stated that his company was thrilled to back Cboe’s ongoing growth in its range of cryptocurrency derivative products. Additionally, he conveyed their enthusiasm for serving as a liquidity provider for the newly launched XBTF futures.

Chlada asserted that Prime Trading was closely aligned with Cboe’s initiatives aimed at expanding the crypto derivatives market. Additionally, he mentioned that the firm was eager to collaborate with Cboe to offer its clients enhanced services. a “best-in-class trading experience.”

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