- Cboe claims that the options will provide consumers with exposure to spot bitcoin ETFs.
- Cboe Bitcoin US ETF Index is set to debut on Monday, Dec. 2.
The first bitcoin spot index options including a cash settlement will be introduced by Cboe Global Markets. Options based on the newly created Cboe Bitcoin US ETF Index, which will monitor the performance of spot bitcoin ETFs traded on U.S. exchanges, are set to debut on Monday, Dec. 2.
Cboe Global Head of Product Innovation Rob Hocking stated:
“Our index options offer a unique value proposition that we believe will appeal to both institutional participants and retail traders alike, who are looking to capitalise on or hedge against bitcoin’s price movements without directly holding the asset.”
Cash-settled Index Options
Moreover, Cboe claims that the options will provide consumers with exposure to spot bitcoin ETFs. Providing a roundabout method to become involved with bitcoin. With these index options being cash-settled, the hassle of physically transferring bitcoin ETFs is eliminated since positions are closed in cash upon expiry. The options will be able to be exercised only on the expiry date and will also provide cash settlement, similar to how options in Europe work.
Furthermore, Cboe Mini Bitcoin U.S. ETF Index options (MBTX), with a notional value one-tenth that of conventional options, will also be introduced by the exchange. Cboe Digital Exchange users may now purchase ether and bitcoin margin futures with cash settlements as part of this launch. Expanding the digital asset derivatives portfolio of Cboe.
With Chair Gary Gensler’s departure, the US Securities and Exchange Commission (SEC) will most certainly look different after years of litigation and attempts to regulate the cryptocurrency sector. Also, large corporations have been the targets of the agency’s heavy-handed prosecutions in recent years.
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