- The first cash-settled index options linked to spot bitcoin ETFs will be introduced by Cboe Global Markets on December 2.
The first cash-settled index options based on the spot price of bitcoin will be introduced by Cboe Global Markets.
These options, which are set to debut on Monday, December 2, will be based on the recently created Cboe Bitcoin US ETF Index, which is intended to monitor the performance of spot bitcoin ETFs that are listed on U.S. exchanges.
According to Cboe, the options will expose consumers to spot bitcoin ETFs, offering a roundabout way to engage with bitcoin. By closing holdings in cash at expiration, these index options will be cash-settled, eliminating the hassle of physically delivering bitcoin ETFs. The options will include European-style exercise, which means they can only be exercised on the date of expiration, in addition to cash settlement.
We think that both institutional players and individual traders who want to profit from or protect themselves against changes in the price of bitcoin without actually owning the asset will find our index options to be a compelling value proposition.
The exchange will also launch Cboe Mini Bitcoin U.S. ETF Index options (MBTX), which have a notional value ten times less than that of regular options.
Cash-settled bitcoin and ether margin futures traded on the Cboe Digital Exchange are already part of Cboe’s digital asset derivatives portfolio; this introduction expands it.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
