Derivatives and securities exchange network Cboe Global Markets has begun to offer trading in its new Cboe FTSE Bitcoin Index futures, new cash-settled futures, based on the FTSE Bitcoin Reduced Value Index (XBTF), and the latest addition to its suite of digital asset derivatives.

Exclusively listed on Cboe Futures Exchange, LLC (CFE), the new XBTF futures are expected to provide market participants with another versatile tool to express views on bitcoin or manage risk. XBTF futures are cash-settled contracts, meaning positions are closed in cash at expiration, removing the complexities of physically delivering bitcoin.

The introduction of XBTF futures follows Cboe's earlier launch of cash-settled options on the Cboe Bitcoin US ETF Index (CBTX and MBTX), creating a complementary suite of bitcoin-related index derivatives products.

Cboe expects each product can be a useful tool for managing bitcoin volatility on its own, or both products can be used in tandem to execute more advanced trading strategies. Additionally, XBTF futures are cleared through OCC, which also clears CBTX and MBTX options.

XBTF futures are settled in the afternoon (PM) on the last business day of each month. They are based on the XBTF Index – developed by FTSE Russell in collaboration with Digital Asset Research – which represents 1/10th the value of the FTSE Bitcoin Index.