Major derivatives and securities exchange Chicago Board Options Exchange (Cboe) Global Markets has announced plans to launch Cboe FTSE Bitcoin Index futures (XBTF) with FTSE Russell, a subsidiary of London Stock Exchange Group (LSEG).
The new XBTF futures are cash-settled contracts and settle on the last business day of each month. They are based on The offering would be based on the FTSE Bitcoin Reduced Value Index (XBTF Index). FTSE Russell developed the latter in collaboration with Digital Asset Research. It represents 1/10th the value of the FTSE Bitcoin Index.
According to the press release, if regulators give it the green light, the team expects the new futures to start trading on Cboe Futures Exchange on 28 April 2025.
Additionally, the XBTF futures will complement the options on the Cboe Bitcoin US ETF Index1 launched in November 2024.
Furthermore, Cboe will offer both BTC-based cash-settled futures and securities options. The goal, it says, is to give a comprehensive suite of products to market participants. It will enable them to implement Bitcoin-related trading and hedging strategies.
Per Cboe, users can utilize the products separately to manage Bitcoin volatility or together to execute an advanced trading strategy. Additionally, Cboe plans to clear XBTF futures through the OCC clearing house. It already clears CBTX and MBTX options.
Shawn Creighton, Director of Index Derivatives Solutions at FTSE Russell, commented on Cboe’s expansion of its Bitcoin product ecosystem via this company. He says: “We have established an industry standard for assessing underlying digital asset and exchange inclusion, and our rigorous vetting and monitoring process is designed to help ensure our indices are reflective of the investable digital assets market.”
Evolving Cboe Bitcoin Product Ecosystem
As reported in November 2024, Cboe said it would launch cash-settled index options based on its Bitcoin US ETF Index on 2 December. The company stated that the options would be listed on its Options Exchange. It would allow traders to gain exposure to Bitcoin price fluctuations without holding the underlying asset.
Notably, that launch expanded Cboe’s existing digital asset offerings, including cash-settled Bitcoin and Ethereum futures.
Over the years, Cboe has launched a number of crypto-related products. It lists many of the US spot BTC and ETH exchange-traded funds (ETFs) on the Cboe BZX Equities Exchange.
Furthermore, the exchange recently revealed the cash-settled index options related to the price of spot Bitcoin. These are available in standard and mini contracts. “This innovation has since spurred a new wave of ETFs listing on Cboe,” the announcement says.
Cboe’s margined Bitcoin and Ether futures, currently trading on Cboe Digital Exchange, will move to Cboe Futures Exchange in Q2 2025.
And the company continues expanding. Just today, it announced that Cboe Clear Europe launched clearing for securities financing transactions (SFTs) covering European cash equities and ETFs.
Also, in March this year, the Cboe BZX Exchange asked the US Securities and Exchange Commission (SEC) for permission to include staking features in the Fidelity Ethereum ETH ETF.
Meanwhile, this latest launch of XBTF futures is the first product under Cboe’s latest collaboration with FTSE Russell, it says. It is focused on “driving product innovation in the digital assets markets.”
Per Catherine Clay, Global Head of Derivatives at Cboe, “this launch comes at a pivotal time.” Demand for crypto exposure continues to grow, she says. “Market participants are increasingly seeking more capital-efficient and versatile ways to gain and manage that exposure.”
Clay adds that many customers already use Cboe’s suite of Bitcoin products.
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