Bitcoin Trading Evolves: Cboe Launches Cash-Settled Futures – What’s Next?

Major derivatives exchange Cboe Global Markets has broadened its cryptocurrency derivative portfolio, introducing new Bitcoin futures settled in cash.

Launched on April 29th via the Cboe Futures Exchange, the new product, ticker XBTF, allows traders to speculate on Bitcoin’s price movements without handling the underlying digital asset. This move signifies growing institutional interest in regulated crypto exposure.

The futures contracts are based on the FTSE Bitcoin Reduced Value Index. By opting for cash settlement, Cboe aims to simplify the trading process compared to physically-delivered contracts, potentially attracting a wider range of investors.

These Bitcoin index futures join Cboe’s existing suite of digital asset products, which includes several popular spot Bitcoin exchange-traded funds (ETFs) and options contracts tied to Bitcoin ETFs, demonstrating a strategic expansion into the asset class.

Settlement for the XBTF futures is scheduled for the afternoon of the final business day each month. This predictable schedule aids traders in managing their positions and cash flow.

Catherine Clay, Cboe’s global head of derivatives, indicated that strong client demand prompted the launch. She emphasized the product offers “another versatile tool to gain and seek to hedge bitcoin exposure, all within a regulated and transparent marketplace, with centralized clearing.”

This launch builds upon the momentum from Cboe’s introduction of cash-settled options linked to its Cboe Bitcoin U.S. ETF Index (CBTX). Plans for CBTX were first noted in November 2024, with the index debuting the following month.

CBTX itself represented a significant step, creating a benchmark tracking the performance of U.S.-listed spot Bitcoin ETFs. Cboe’s BZX Equities Exchange also lists spot Ether (ETH) ETFs, further cementing its role in bridging traditional finance and the burgeoning cryptocurrency market.