Cboe to Launch New Bitcoin Futures in Partnership With FTSE Russell

Key Points:

• Cboe Digital is set to introduce a new Bitcoin futures product on April 28, pending regulatory clearance.

• The cash-settled futures contract will be tied to the XBTF Index, which reflects 1/10th the value of the FTSE Bitcoin Index.

• The launch responds to increasing institutional interest in regulated crypto trading instruments.

Cboe Digital, the cryptocurrency division of the Chicago Board of Options Exchange, announced Monday that it aims to launch a new bitcoin (BTC) futures product later this month, pending regulatory approval.

Developed in collaboration with FTSE Russell, the cash-settled contract will be tied to the XBTF Index, which reflects 1/10th the value of the FTSE Bitcoin Index. Contracts will settle on the final business day of each month.

Should regulators give the green light, Cboe's new bitcoin futures product is scheduled to go live on April 28, according to the exchange.

Futures are financial contracts obligating the buyer and seller to transact an asset at a set price on a future date. They’re commonly used to manage risk, hedge positions, or take advantage of expected market shifts.

“This launch comes at a key moment, as interest in crypto exposure continues to rise,” said Catherine Clay, Global Head of Derivatives at Cboe. “Traders and institutions are increasingly looking for more efficient and adaptable tools to access and manage digital assets.”

In November 2023, Cboe made history as the first U.S. regulated exchange to provide both spot and leveraged derivatives trading on one platform, following approval from the CFTC to list margined bitcoin and ether (ETH) futures.