Cboe Digital, the crypto arm of the Chicago Board of Choices Alternate, is hoping to roll out a brand new bitcoin (BTC) futures product later this month if accepted by regulators, the trade stated on Monday.
The brand new buying and selling car, in partnership with FTSE Russell, will probably be cash-settled and primarily based on the XBTF Index, which represents 1/tenth the worth of the FTSE Bitcoin Index. It can decide on the final enterprise day of every month.
If regulators approve Cboe’s software, the futures would start buying and selling on April 28, it stated.
Futures are a sort of derivatives the place the client and vendor conform to commerce an asset at a hard and fast worth and date sooner or later. They’re a preferred car to hedge and handle danger and capitalize on developments and market habits.
“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,” said Catherine Clay, Global Head of Derivatives at Cboe, in a statement.
In November 2023, Cboe became the first U.S. regulated exchange to offer both spot and leveraged derivatives trading on a single platform after it received approval from the CFTC to record margined bitcoin and ether (ETH) futures.
