Cboe to Launch Cash-Settled Bitcoin Options

Cboe Global Markets is set to launch the first cash-settled options linked to spot Bitcoin, with trading beginning on December 2. The options will be based on the Cboe Bitcoin U.S. ETF Index (CBTX), which tracks the performance of spot Bitcoin ETFs in the U.S., providing investors exposure to Bitcoin price movements without direct ownership. These options will feature cash settlement, simplifying the process by avoiding the complexities of Bitcoin delivery, and will utilize a European-style exercise mechanism, allowing execution only on expiration dates. In addition to standard options, mini options (MBTX) will be available, catering to smaller portfolios. This launch follows recent regulatory approvals and reflects increasing interest in digital assets, aiming to enhance market liquidity and offer innovative trading strategies. Cboe's initiative is poised to attract both institutional and retail investors, marking a significant step in the evolution of cryptocurrency trading products.