Cboe Global Markets Inc. (BATS:CBOE) has announced plans to introduce the first-ever cash-settled index options tied to Bitcoin's (CRYPTO: BTC) spot price.
What Happened: These new financial instruments are scheduled for launch on Dec. 2 and will be based on the Cboe Bitcoin U.S. ETF Index, which tracks a selection of spot Bitcoin exchange-traded funds (ETFs) listed in the United States.
The move is part of a broader trend of integrating cryptocurrency-related securities into traditional financial markets.
This announcement comes shortly after Nasdaq began listing spot Bitcoin ETF options earlier this week, enabling U.S. investors to use derivatives to speculate on Bitcoin's price movements or hedge their existing positions.
Cboe's initiative adds to the growing suite of crypto-related trading products available in the regulated U.S. market.
Historically, the majority of crypto derivatives trading, such as options and futures, has taken place on offshore platforms due to restrictive U.S. regulations.
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Binance and Deribit, both headquartered outside the U.S., have been the dominant players in this space, offering leveraged trading to their users.
However, the increasing appetite for crypto derivatives in the U.S., coupled with President-elect Donald Trump's pro-crypto stance, is driving U.S.-based marketplaces to expand their offerings.
Why It Matters: This shift has allowed institutional and retail investors to access new tools for managing risk and amplifying returns.
CME Group, which already offers Bitcoin futures, has reported a significant increase in open interest, reflecting heightened activity from institutional investors.
This growth has begun to erode Binance's market share.
Additionally, over-the-counter options trading has emerged as a popular strategy among U.S. institutions seeking to hedge their crypto positions or implement more complex trading strategies.
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