As Bitcoin approached $100,000, Cboe Global Markets plans to launch cash-settled index options tied to the price of spot Bitcoin. Starting December 2, the exchange will introduce the Cboe Bitcoin U.S. ETF Index (CBTX) to offer a new way to access Bitcoin exposure through options.

According to the official announcement, this offering has the potential to promote wider participation in digital assets by allowing both institutional and retail investors to engage with Bitcoin's price movements.

Crypto Investment Tools

Cboe's new Bitcoin ETF index options track the performance of a basket of spot Bitcoin ETFs listed on US exchanges. The index uses a modified market cap-weighted structure, ensuring that it closely tracks the spot Bitcoin price while eliminating the complexities associated with physically settling Bitcoin itself.

Instead, the options are cash-settled, meaning they can be closed out in cash when the contract expires. This removes the need to deliver actual Bitcoin ETFs, a key consideration for many investors.

These options give traders a novel means of gaining exposure to Bitcoin’s volatile price movements without the risks that come with directly holding the asset. Additionally, they provide a valuable tool for hedging, allowing investors to manage risks associated with Bitcoin price fluctuations.

Cboe will launch a range of options, including standard-sized and mini-Bitcoin ETF index options. The mini options (MBTX) will be one-tenth the size of the standard contracts, offering smaller traders the opportunity to manage risk with greater granularity.

A Platform for Digital Assets

Cboe’s new offering is part of the company’s broader initiative to expand its digital asset derivatives platform. The exchange already lists cash-settled Bitcoin and Ether margin futures, and the new index options will further bolster its crypto trading offerings.

These new options allow investors to take advantage of Bitcoin's price movements without the complexities of directly holding cryptocurrencies.

In 2025, subject to regulatory approval, Cboe plans to transition its digital asset futures products to its Cboe Futures Exchange. This move is expected to further integrate its services into the rapidly expanding digital assets market.