#COSSocialFiRevolution Cboe Global Markets Inc. has announced plans to launch the first cash-settled index options linked to the bitcoin spot price.
Options on the Cboe bitcoin ETF will begin trading on December 2. They will be based on an index that tracks a group of American spot bitcoin ETFs.
Bitcoin ETF Options Attract Institutional Investors
This event occurred shortly after the Nasdaq exchange launched bitcoin ETF options, allowing investors to speculate on $BTC
price movements or manage risks through derivatives.
Cryptocurrencies such as options and futures have traditionally been traded outside the United States due to regulatory hurdles. However, the growing demand for the instrument has prompted major American exchanges to expand their offerings in this sector.
"We expect that the unique benefits of cash settlement, combined with the availability of various index sizes and FLEX options, will give customers more flexibility in their trading strategies," Cboe said in a press release.
Grayscale has also joined the trend by starting options trading for its GBTC and BTC Mini ETFs. BlackRock's IBIT options, meanwhile, marked the debut with a record trading volume of over $425 million.
Spot bitcoin ETFs are becoming increasingly popular: at the time of writing, they manage more than 5% of all BTC mined. In March and November, when bitcoin reached peak prices, the ETF received about $4 billion, which confirms the link between the demand for ETFs and the growth of the asset rate.
"Options expand the ecosystem by attracting more traders and increasing liquidity. And liquidity is a lure for big players. Therefore, you will see more institutions using not only options, but also the ETF itself, thanks to the options available," Bloomberg analyst Eric Balchunas said in a recent podcast.
Earlier this month, Bitcoin ETF trading volumes exceeded $7.22 billion. IBIT from BlacRock strengthened its dominance, reaching $40 billion of assets under management and entering the top 1% of ETFs worldwide in terms of AUM. All these events confirm the growing adoption of cryptocurrency products in traditional financial markets.