Cboe Global Markets has launched cash-settled FTSE Bitcoin Index futures, XBTF, aimed at institutional investors. The product simplifies Bitcoin trading by eliminating the need for physical delivery. With support from liquidity providers like Barak Capital and Prime Trading, the XBTF futures reflect rising demand for crypto-based derivatives in the market.
Cboe Global Markets has officially launched its Cboe FTSE Bitcoin Index futures on April 29, 2025. This new offering, tagged as XBTF, is aimed at institutional and professional investors looking to manage exposure to digital assets. The futures are based on the FTSE Bitcoin Reduced Value Index, which simplifies Bitcoin trading by enabling cash settlement rather than requiring the actual transfer of Bitcoin at expiry.
The cash-settled XBTF futures offer 1/10th of the value of Bitcoin, making it a more accessible option for many investors. This approach enhances financial efficiency significantly, as it eliminates the complexities and logistics involved in Bitcoin delivery. According to Cboe, these futures will be settled on the last business day of each month, complementing their existing suite of digital asset products, which also includes Bitcoin exchange-traded funds (ETFs) and options.
This launch illustrates a broader trend of increasing demand for crypto-based derivatives from institutional investors. Catherine Clay, Cboe’s Global Head of Derivatives, expressed that the new futures product is a versatile tool designed to manage Bitcoin exposure and risk effectively. She noted, “Customer demand for crypto-based derivatives continues to rise, and Cboe is committed to building an ecosystem that ensures efficient access to Bitcoin.”
XBTF follows the recently introduced options on the Cboe Bitcoin U.S. ETF Index, which tracks various spot Bitcoin ETFs available in the U.S. These options can be employed either individually or together to devise more intricate strategies surrounding Bitcoin volatility. The Options Clearing Corporation will clear all XBTF contracts, which assures robust risk management and clear settlement processes.
The timing of the XBTF future’s launch aligns closely with the burgeoning interest from institutional investors in digital asset derivatives. Notably, Barak Capital and Prime Trading are stepping in as liquidity providers. A representative from Barak Capital emphasised their eagerness to back Cboe’s new futures, stating that efficient access to stable markets is crucial as the investor interest in digital assets grows.
Prime Trading’s Chief Operating Officer, Tom Chlada, also expressed his firm’s commitment, saying they are aligned with Cboe’s goal to expand the crypto derivatives market. This indicates a robust partnership that underlines Cboe’s efforts to cater to the evolving landscape of Bitcoin-focused investment strategies. The launch of XBTF signifies Cboe’s ongoing dedication to offering a diverse array of regulated cryptocurrency products suited to changing market needs.
