Cboe Drops Cash-Settled Bitcoin Futures—Wall Street’s Latest Crypto Gateway Drug

Cboe just fired the starting pistol for institutional crypto derivatives—again. Their new cash-settled FTSE Bitcoin Index futures let traders gamble on BTC without touching the ’volatile’ underlying asset (read: banks still fear self-custody).

Why it matters: Another brick in the regulated crypto casino—liquidity begets liquidity, and CME now has competition. Watch for contango plays as arb traders pile in.

The cynical take: Because nothing screams ’mature asset class’ like layering leveraged paper claims atop a decentralized network. Your move, SEC.

• Cboe’s XBTF futures offer 1/10th value BTC exposure with monthly cash settlement.
• XBTF joins CBTX and MBTX as Cboe’s Bitcoin derivatives are cleared through OCC.
• Barak Capital and Prime Trading will provide liquidity for Cboe’s new Bitcoin futures.

Cboe Global Markets, a leading trading and investment solutions provider, introduced its Cboe FTSE Bitcoin Index futures on April 29, 2025. This newly launched product enables institutional and professional investors to trade or manage digital asset risk in the market.

The Cboe FTSE Bitcoin Index futures trading under the ticker XBTF are cash-settled contracts based on the FTSE Bitcoin Reduced Value Index. The new product launch represents an important move toward simplifying the complexities of Bitcoin trading.

The latest addition to our growing suite of digital asset derivatives is available for trading: Cboe FTSE Bitcoin Index futures (#XBTF)!

More details and comments from market participants in the press release:https://t.co/Qyd8jML2C4 @FTSERussell pic.twitter.com/OUm0Y8fYdR

XBTF, operating as a cash-settled futures solution, enhances financial efficiency by eliminating the requirement of actual Bitcoin delivery at contract expiration, providing an alternative to traditional futures that require the physical transfer of the cryptocurrency.

According to Cboe, XBTF futures are settled in the afternoon on the last business day of each month. This move complements its existing lineup of digital asset products which include spot Bitcoin exchange-traded funds and Bitcoin ETF options.

Strategic Expansion Amid Rising Demand for Bitcoin Risk Tools

The new futures product by the company shows the rising demand from institutions for crypto-based derivatives. According to Cboe Global Head of Derivatives Catherine Clay, the new product gives users a versatile tool for managing Bitcoin exposure and risk. “As customer demand for crypto-based derivatives continues to rise, Cboe is committed to building a well-rounded ecosystem to facilitate more efficient access to Bitcoin,” Clay stated.

The launch follows the earlier introduction of options on the Cboe Bitcoin U.S. ETF Index (CBTX and MBTX), which track the performance of multiple spot Bitcoin ETFs listed in the U.S. XBTF. These options can be used independently or together to build complex strategies around Bitcoin volatility.

Additionally, the Options Clearing Corporation, which is responsible for clearing CBTX and MBTX options contracts, will handle clearing the XBTF contract. Using OCC for clearing, the company secures centralized risk management and transparent settlement, creating more secure and stable conditions for its crypto derivatives marketplace.

Market Makers Back Product Rollout

The launch of XBTF futures occurs concurrently with institutional investors’ rising demand for digital asset derivatives. The new product receives backing from market makers like Barak Capital and Prime Trading. Barak Capital, a leading market maker, highlighted its excitement to support the company’s new futures offerings.

“As investor participation in digital assets has grown, the ability to access efficient and stable markets is paramount,” a representative from Barak Capital commented.

Furthermore, Prime Trading, LLC, announced its engagement as a liquidity provider. “We are strongly aligned with Cboe’s efforts to grow the crypto derivatives market and look forward to working with them,” said Tom Chlada, Prime Trading’s Chief Operating Officer.

Moreover, the XBTF futures establish a new phase of the company’s dedication to providing diverse regulated products aligned with Bitcoin-focused investment requirements.