Cboe to Launch Bitcoin ETF-Linked Options in December

Cboe Global Markets Inc. announced plans to introduce the first cash-settled index options tied to Bitcoin’s spot price.

Cboe’s Bitcoin ETF options will debut on December 2 and will be based on its ETF Index, which tracks a group of US-listed spot Bitcoin exchange-traded funds.

Bitcoin ETFs Options Continue to See Interest from Institutional Investors

This development comes shortly after Nasdaq listed Bitcoin ETF options, allowing investors to speculate on Bitcoin’s price movement or manage risk through derivatives.

Crypto derivatives, including options and futures, have traditionally been traded outside the United States due to regulatory hurdles.

However, increasing demand and a favorable stance toward cryptocurrency adoption have encouraged major U.S. exchanges to expand their offerings in the sector.

“We expect the unique benefits of cash-settlement, combined with the availability of various index sizes and FLEX options, will give customers more flexibility in their trading strategies,” Cboe stated in its press release.

Earlier this week, Grayscale joined the trend by starting options trading for its GBTC and BTC Mini ETFs. Meanwhile, BlackRock’s IBIT options trading set a record on its first day, with over $425 million in trades.

Overall, spot Bitcoin ETFs continue to gain significant traction, now accounting for 5.33% of all mined Bitcoin. Bitcoin price peaks in March and November coincided with $4 billion in ETF inflows, highlighting a strong connection between ETF demand and price accumulation.