The Cboe Global Markets, Inc. network of derivatives and securities exchanges. announced today that it is expanding its partnership with FTSE Russell, a leading global index provider, to drive product innovation in the digital asset space.
This new initiative builds on Cboe and FTSE Russell’s long-standing relationship and will leverage their combined expertise to develop new derivatives products, potentially starting with cash-settled index options linked to the FTSE Bitcoin Index and the FTSE Ethereum Index.
The partnership underscores the companies’ shared commitment to growing the digital asset space and expanding investor access to the asset class. Cboe’s plans to list cash-settled index options on the FTSE indices, subject to regulatory approvals, will help meet growing investor demand for exchange-traded derivatives to acquire and manage cryptocurrency exposures in a trusted, transparent and US controlled trading environment.
“For many years, Cboe and FTSE Russell have partnered to offer index options based on the FTSE Russell indices, which have evolved into some of the most actively traded products in the world,” said Catherine Clay, Global Head of Derivatives at Cboe. “Our expanded relationship today reflects this successful partnership model, combining Cboe’s unparalleled derivatives expertise with FTSE’s world-class indexing capabilities to potentially bring new solutions to the digital asset space. Derivatives have long been an area where Cboe excels and we are now strategically expanding our expertise into the digital asset space. As these two asset classes converge, we look forward to continued innovation and our relationship with FTSE Russell will be key to this strategy.”
The FTSE Bitcoin Index and the FTSE Ethereum Index are part of the FTSE Digital Asset Index Series, which is developed in partnership with Digital Asset Research (DAR). These indices are designed to capture the performance of bitcoin and ether as determined by the FTSE DAR benchmark and provide institutional-quality, liquidity-tested exposure to the digital asset market.
Speaking about the expanded partnership, Fiona Bassett, CEO of FTSE Russell, said: “We are delighted to continue working alongside Cboe Global Markets, realizing our mutual commitment to enabling new asset innovation in the financial markets. Our indices are used by some of the world’s largest crypto asset managers for best-in-class data and processes built to manage regulatory and commercial risk – critical differentiators for data in this asset class.”
Cboe’s expanded partnership with FTSE Russell follows the recent realignment of its digital asset business – a move that will consolidate all Cboe US futures products, including digital asset futures, into one exchange, subject to regulatory control, supported by Cboe’s broadest global derivatives franchise and technology platform.
In addition, the partnership is expected to introduce new products that will complement Cboe’s existing digital asset initiatives. These currently include the listing and trading of cash-settled bitcoin futures and ether margin contracts, along with spot bitcoin ETFs, where the Cboe BZX Equities Exchange lists six of the 11 ETFs listed domestically.
In addition, Cboe filed five of eight recently SEC-approved rule filings to list ether price-linked ETFs.
“Our plans to develop bitcoin and ether index options come at an exciting time as more investors of all types enter the crypto markets and increasingly look to exchange-traded derivatives to manage their crypto exposures,” said Rob Hocking, Head of Product Innovation at Cboe. . “Many of our clients are already trading Cboe-listed digital asset products, whether margin futures or ETFs, linked to bitcoin and ether. The launch of cash-settled index options will be additional – resulting in a more comprehensive suite of products and helping to foster greater liquidity and hedging opportunities in these markets. We believe derivatives will drive the next phase of digital asset market maturation and are excited about the potential benefits that cash-settled index options can bring to the space.”
Cboe intends to share more details about its plans for cash-settled index options on the FTSE Bitcoin Index and the FTSE Ethereum Index, possibly later this year.