Cboe Digital Eyes Launch of Cash-Settled Bitcoin Futures on April 28

Cboe Digital, the cryptocurrency division of the Chicago Board Options Exchange (Cboe), plans to introduce a new cash-settled bitcoin (BTC) futures product later this month, pending regulatory approval. The proposed futures contract, developed in collaboration with FTSE Russell, is designed to offer a more capital-efficient way for investors to gain exposure to bitcoin price movements.

The futures product will be based on the XBTF Index, which tracks one-tenth the value of the FTSE Bitcoin Index. It will settle on the last business day of each month and provide traders with a regulated tool for hedging risk or speculating on BTC price trends without needing to hold the underlying asset.

If approved, trading will begin on April 28, adding to Cboe’s growing suite of digital asset offerings. The launch comes amid rising demand for diversified crypto investment vehicles, as institutions and professional traders seek reliable and regulated platforms for digital asset exposure.

Catherine Clay, Global Head of Derivatives at Cboe, noted that the product launch aligns with market needs. “This launch comes at a pivotal time as demand for crypto exposure continues to grow and market participants are increasingly seeking more capital-efficient and versatile ways to gain and manage that exposure,” she said in a statement.

In November 2023, Cboe became the first U.S. regulated exchange to offer both spot and margined crypto derivatives on one platform, following CFTC approval. This new BTC futures product further solidifies Cboe’s position in the evolving crypto derivatives market.

The introduction of this bitcoin futures contract is expected to attract institutional investors and enhance crypto market accessibility through transparent, regulated trading solutions.