Cboe Futures Exchange (CFE) has launched the Cboe FTSE Bitcoin Index Futures (Ticker: XBTF) product in its growing portfolio of digital assets.
Future contracts are linked to the FTSE Bitcoin Reduced Value Index, which measures 1/10th of the value of the FTSE Bitcoin Index.
XBTF futures are settled in cash. Traders won’t trade actual bitcoin upon expiry of the contracts. They settle in cash instead. This model eliminates delivery- and custody-related logistical obstacles associated with digital assets.
Cboe indicates the launch is part of its work catering to increasing demand for cryptocurrency-based products. “We’re looking to build a safe and flexible venue for exposure to bitcoin,” Cboe’s Global Head of Derivatives Catherine Clay stated. “These futures are the next component of that puzzle.”
XBTF follows Cboe’s previous introductions of spot bitcoin ETF-indexed options such as CBTX and MBTX. Investors can now use both options and futures to balance bitcoin-related risk. These products can also be paired together to create complex positions around volatility and price action.
However, XBTF futures are traded only on Cboe’s own Futures Exchange and cleared on OCC. XBTF futures settle on the last business day of the month.
XBTF index enhances regulated Bitcoin market access
Liquidity providers also back the product. Barak Capital, a long-term market maker on Cboe, has agreed to provide support. “Efficient access to bitcoin markets is important to institutions,” a spokesperson stated. “We’re happy to support the product.”
Tom Chlada, Prime Trading’s Chief Operating Officer, also weighed in in support. “We support Cboe’s vision of the crypto asset class,” he stated. “XBTF facilitates the construction of the tools that traders of today require.”
Cboe collaborated with FTSE Russell and Digital Asset Research to create the XBTF Index. The objective is to bring a transparent and reliable price benchmark to the market.
By providing a lower-value version of the FTSE Bitcoin Index, Cboe is looking to win over more users, in particular those seeking lower-cost exposure.
Nonetheless, the launch reinforces Cboe’s footprint in the digital assets market. Having both spot-based ETFs and derivative products now listed, the exchange now has a broad set of offerings to investors looking to gain bitcoin exposure in a regulated environment.
