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CBOE Launches New Bitcoin Futures Product
The Chicago Board Options Exchange (CBOE) has launched a new Bitcoin futures product, expanding its offerings in the digital assets space.
The new product, which is listed under the ticker symbol XBt, is a cash-settled futures contract that allows investors to buy and sell Bitcoin futures with a settlement date of the third Friday of the contract month.
The new contract is designed to provide market participants with a way to gain exposure to the price of Bitcoin without actually holding the cryptocurrency. The cash-settled feature means that the contract is settled in US dollars, rather than Bitcoin, which reduces the risk associated with holding physical Bitcoin.
The launch of the new contract is a significant development for the cryptocurrency market, which has seen significant growth in recent years. The CBOE's decision to launch a Bitcoin futures product is seen as a major milestone for the market, as it provides institutional investors with a way to gain exposure to the price of Bitcoin in a regulated and transparent manner.
The new contract will be available for trading on the CBOE's electronic trading platform, known as the CBOE EDGX Options Exchange. The contract will be available for trading on a daily basis, with trading hours from 9:30 am to 4:00 pm ET.
The launch of the new contract comes after the CBOE launched its first Bitcoin futures product in December 2017. The original product, which was listed under the ticker symbol XBT, was also a cash-settled futures contract that allowed investors to buy and sell Bitcoin futures with a settlement date of the third Friday of the contract month.
The new contract is expected to be popular among institutional investors, such as hedge funds and family offices, who are looking to gain exposure to the price of Bitcoin in a regulated and transparent manner. The contract is also expected to be popular among individual investors who are looking to gain exposure to the price of Bitcoin without actually holding the cryptocurrency.