Cboe Global Markets has signed an enhanced deal with FTSE Russell to advance the development of digital asset derivatives. This partnership will be centered on the creation of new products with cash-settled index options for Bitcoin and Ethereum.
The initiative extends a good relationship between Cboe and FTSE Russell, a global index provider, and a derivatives and securities exchange. Together, they will try to meet the increasing demand of investors in crypto derivatives, providing a regulated and transparent trading environment in the U.S. for managing crypto exposures.
Catherine Clay, Global Head of Derivatives at Cboe, said that by joining forces, they are seeking to bring new and creative solutions for the digital assets area.
This partnership will help expand Cboe’s current digitization framework by offering options to invest in cryptocurrencies with institutional-grade and liquidity-screened exposure.
The FTSE Bitcoin and Ethereum Indices are part of the FTSE Digital Asset Indices Series, developed with Digital Asset Research (DAR). These indices aim to reflect the performance of bitcoin and ether, offering institutional-quality, liquidity-screened exposure to the digital asset market.
Expanding the Customer Base of Crypto Markets
Fiona Bassett, CEO of FTSE Russell, said that she was looking forward to expanding on their partnership with Cboe which will facilitate the development of new assets in financial markets. It aims at deepening the access of investors to digital assets and hence creating a seamless integration of digital instruments in conventional trading platforms.
This partnership follows Cboe’s recent realignment of its digital assets business, consolidating all U.S. futures products, including digital asset futures, onto one exchange pending regulatory review. This move is expected to introduce new products that will complement Cboe’s existing digital assets initiatives, including the listing and trading of cash-settled bitcoin and ether margin futures and spot bitcoin ETFs.
Rob Hocking, the Head of Product Innovation at Cboe, said that the company’s decision to launch such derivatives is timely given the rising interest in cryptocurrency investment.
Cboe and FTSE Russell are working on the plans and expect to launch cash-settled index options by the end of this year, subject to regulatory approval.
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