Cboe Global Markets has just announced that it intends to introduce the first cash-settled index options that are linked to the spot price of Bitcoin.
The launch is scheduled for December 2 and the options will be based on the Cboe Bitcoin US Index ETF.
This index will track the performance of spot Bitcoin ETFs listed on US exchanges.
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The options will provide exposure to spot Bitcoin ETFs, offering an alternative way to participate in Bitcoin and will be settled in cash.
In addition to cash settlement, the options will allow for European-style exercise, meaning they will only be exercisable on the expiration date.
Cboe will also launch Mini Bitcoin U.S. ETF Index options, whose notional value will be one-tenth that of standard options.