Cboe to launch new cash-settled bitcoin options

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Traders will soon have another option for trading option contracts linked to the price of bitcoin.

Cboe Global Markets announced on Friday that it’s planning to launch the first cash-settled index options tied to the pioneering cryptocurrency shortly after the Thanksgiving holiday. The new contracts are expected to begin trading on Dec. 2, according to a press release.

The contracts won’t track the price of bitcoin directly. Instead, they will be based on the Cboe Bitcoin U.S. ETF Index. The index was designed by Cboe to track the prices of several spot bitcoin exchange-traded funds on a modified market-cap-weighted basis. The gauge should be closely correlated with the actual spot price of bitcoin, however.

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