Cboe Global Markets has shared their plans to introduce a new type of index options, which will be linked to the spot price of Bitcoin. These options, scheduled to launch on December 2, will be based on the Cboe Bitcoin US ETF Index, which tracks the performance of Bitcoin ETFs listed on US exchanges.
This move by Cboe will provide investors with exposure to spot Bitcoin ETFs, offering an alternative way to participate in the cryptocurrency market. The options will be cash-settled, meaning that profits or losses will be settled in cash at the end of the contract, removing the complications of physically trading Bitcoin ETFs.
Additionally, the options will have a European-style exercise, meaning they can only be exercised on the expiration date. According to Rob Hocking, Head of Product Innovation at Cboe, these index options will be attractive to both institutional and retail traders who want to take advantage of or hedge against fluctuations in Bitcoin’s price without actually holding the asset.
As part of this launch, Cboe will also introduce Mini Bitcoin U.S. ETF Index options, which will have a notional value one-tenth the size of standard options.
