According to the announcement, the new product will be exclusively traded on the Cboe Options Exchange and regulated by the U.S. Securities and Exchange Commission (SEC). It is based on the Cboe Bitcoin U.S. Exchange Traded Fund (ETF) Index, a modified market cap-weighted index that tracks the performance of U.S.-listed spot bitcoin ETFs. The index aims to reflect spot bitcoin‘s price, offering a reference point for cash-settled contracts.
Cboe said it will debut standard and mini index options, alongside cash-settled FLEX options. The latter allows traders to customize terms such as strike price, expiration date, and exercise style. Mini options, at one-tenth the notional value of standard contracts, are designed for smaller-scale portfolios or more granular risk management. All options will feature European-style exercise, limiting actions to the expiration date, which reduces the risk of early assignment.
By utilizing cash settlement, the company claims the product eliminates the logistical challenges of physical delivery. This structure is intended to attract institutional and retail participants seeking exposure to bitcoin (BTC) price movements or risk management opportunities. Cboe’s move is part of a broader expansion into digital assets, complementing its existing portfolio of bitcoin and ether margin futures traded on the Cboe Digital Exchange.
The initiative follows Cboe’s history of developing innovative financial instruments. According to the company, the new options provide a versatile trading tool for market participants aiming to hedge against or capitalize on the volatile price of bitcoin without directly holding the asset. Adam Inzirillo, global head of data and access solutions at Cboe, remarked that this move showcases the company’s ability to leverage its platform for customer benefit.
“Our ability to leverage the full breadth of our platform to continually bring new solutions to market is a key differentiator for Cboe and a major benefit to our customers,” Inzirillo said. Cboe’s announcement highlights the growing integration of cryptocurrencies into traditional financial (tradfi) markets. The exchange also operates a leading venue for trading spot bitcoin ETFs in the U.S., further solidifying its position in the digital asset ecosystem.
The launch of bitcoin options on Dec. 2 comes amid increasing institutional interest in cryptocurrency derivatives. Whether the product succeeds in driving broader adoption or remains a niche tool for sophisticated traders will depend on market demand and regulatory developments.
