Cboe, a key participant in global banking, is introducing a new Bitcoin futures derivative. The VanEck Bitcoin Strategy ETF will be the foundation for the FTSE Bitcoin Index futures, which will go live on April 28. This cash-settled product accounts for one-tenth of the FTSE Bitcoin Index's value.
The launch is the result of a collaboration between Cboe and FTSE Russell. It supplemented Cboe's recent Bitcoin options offers. Catherine Clay, Cboe's global head of derivatives, underlines the increasing need for crypto exposure. Cboe, formed in 1973, launched its first Bitcoin futures in 2017. The exchange continues to innovate, most recently announcing intentions for 24-hour weekday trading. This action closes the gap between traditional finance and cryptocurrency markets.
Despite the rise of Bitcoin ETFs, futures are still popular among cryptocurrency traders. A recent leverage event resulted in a $10 billion open interest wipeout. Coinbase is developing products in this market, to provide US residents with 24/7 trading of Bitcoin and Ether futures.
Cboe's latest product launch shows the ongoing evolution of crypto-based financial instruments in traditional markets.
