Cboe global markets (CBOE) announced on Friday plans to launch the first cash-settled index options linked to the price of bitcoin. Public information indicates that these new contracts are expected to begin trading on December 2.
The above contracts do not directly track the price of bitcoin but are based on the cboe's bitcoin usa etf index. This index, designed by cboe, aims to track the prices of several spot bitcoin exchange-traded funds (etfs) using a modified market cap weighting approach. The index is closely related to the actual spot price of bitcoin. Since it is based on the index rather than the etf, these new contracts are cash-settled.
Currently, bitcoin alternatives in the market only allow for delivery of etfs or stocks like microstrategy, which traders have long considered a substitute for bitcoin.
In addition to standard-sized contracts, cboe will launch small options tied to its spot bitcoin etf mini index, with a nominal value one-tenth that of large options.