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 Previous article Cboe to launch first cash-settled Bitcoin index options Next
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Home Latest Cryptocurrency News Cboe to launch first cash-settled Bitcoin index
options


CBOE TO LAUNCH FIRST CASH-SETTLED BITCOIN INDEX OPTIONS

By Charles Thuo - 3 min read
22 November 2024
 * Cboe to launch cash-settled Bitcoin index options based on the CBTX index on
   Dec 2.
 * The options will offer indirect exposure to Bitcoin via US spot Bitcoin ETFs.
 * Mini options and customizable FLEX options will also be available at launch.

Cboe Global Markets, a leader in the derivatives and securities exchange
network, has announced plans to launch the first cash-settled index options tied
to the price of spot Bitcoin.

The new offering, set to go live on December 2, 2024, will be based on the Cboe
Bitcoin US ETF Index (CBTX), marking a significant development in the world of
cryptocurrency derivatives.

The CBTX index, a modified market cap-weighted benchmark developed by Cboe Labs
and Cboe Global Indices, is designed to track the performance of a basket of
Bitcoin exchange-traded funds (ETFs) listed on US exchanges. The index aims to
offer indirect exposure to spot Bitcoin by reflecting the performance of these
ETFs, providing investors with a way to gain exposure to Bitcoin’s price
movements without directly holding the asset.

The upcoming options will be listed exclusively on the Cboe Options Exchange,
regulated by the US Securities and Exchange Commission (SEC), and will be
cash-settled at expiration. This means that positions will be closed in cash
rather than requiring physical delivery of Bitcoin ETFs, simplifying the process
for traders.

In addition, these options will feature European-style exercise, meaning they
can only be exercised on the expiration date, eliminating the risk of early
assignment.

To further broaden market access, Cboe will also offer mini options (MBTX) at
launch. These options will be one-tenth the notional value of the standard
options, offering greater flexibility for smaller portfolios and more granular
risk management.

Additionally, Cboe plans to introduce cash-settled FLEX options for both CBTX
and MBTX, allowing traders to customize key contract terms, such as exercise
price, style, and expiration date.

Rob Hocking, Global Head of Product Innovation at Cboe, highlighted that the new
options products are designed to meet the growing demand for efficient exposure
to Bitcoin.

The launch aligns with Cboe’s broader digital assets strategy, which includes
Bitcoin and Ether futures, and aims to provide both institutional and retail
investors with innovative tools to capitalize on or hedge against Bitcoin price
movements.

This move underscores Cboe’s commitment to expanding its crypto derivatives
offerings and strengthening its position as a leading venue for crypto-related
trading products.

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BLOCKCHAIN ASSOCIATION OUTLINES ‘FIRST 100-DAYS’ PRIORITIES FOR TRUMP

By Benson Toti - min read
22 November 2024
 * Blockchain Association wants to see the establishment of a crypto regulatory
   framework as a priority.
 * Trump should appoint a new SEC chair within the first 100 days.
 * Other key areas include an end to the debanking of crypto companies and
   creation of an advisory council.

Blockchain Association has sent a letter to US President-elect Donald Trump,
urging the new incoming government to consider five key areas in the first 100
days of the administration.

The association, which has nearly 100 members, noted the priority areas they
believe Trump’s government and Congress should focus on in those first three
months in a letter submitted on Nov. 22.

According to the crypto and blockchain advocacy group, see the establishment of
a crypto regulatory framework as one of the first things the pro-crypto
president and Congress should focus on.

“President-elect Trump’s vision to make America the crypto capital of the world
is a hope shared by the entire crypto industry – and its founders, developers,
and innovators. And it can be realized with President-elect Trump’s arrival to
Washington, along with the most pro-crypto Congress in history,” said Blockchain
Association chief executive officer Kristin Smith.


NEW SEC CHAIR AND ROLL BACK OF SAB 121

The group also wants to see an end to the debanking of crypto and blockchain
companies, the swift appointment of a new SEC chair and roll back of SAB 121.

As well as appointments at the Treasury Department and IRS, the Blockchain
Association believes the other priority should be the creation of a crypto
advisory council. Per the letter, this council will collaborate with Congress
and US federal regulatory agencies to promote and not stifle crypto innovation.

“We propose a crypto advisory council to help craft detailed, fit-for-purpose
regulations through collaboration with Congress & regulators. Public-private
partnerships are essential to establishing smart rules that respond to the tech
and protect consumers,” the group noted.

The Blockchain Association’s letter comes as reports suggest Trump’s team is
working on appointing a “crypto czar” at the White House. Several pro-crypto
individuals are also in the running to become the next SEC chair, with Gary
Gensler set to step down in January.

Trump’s election boosted the crypto market, sending Bitcoin to near $100,000,
while XRP, Solana and Cardano are among altcoins to rally hard amid the
optimism.

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22 November 2024 US SEC Commissioner Jaime Lizárraga to resign in January

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--------------------------------------------------------------------------------

22 November 2024 US spot Bitcoin ETFs hit $30 billion in combined net inflows
since January launch


FEATURED BROKER

Coinbase offers an extensive selection of cryptocurrencies, allowing users to
diversify their portfolios.
Supports users from over 100 countries including the US and Canada
Employs robust security measures, including cold storage, to safeguard users’
crypto holdings.
Open My Account Disclaimer


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