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Cboe expands FTSE Russell digital asset derivatives tie-up

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Derivatives and securities exchange network Cboe Global Markets is expanding its collaboration with global index provider FTSE Russell by developing new derivatives products, potentially beginning with cash-settled index options tied to the FTSE Bitcoin Index and the FTSE Ethereum Index.

This follows Cboe’s recent realignment of its digital assets business – a move that will consolidate all Cboe US futures products, including digital asset futures, onto one exchange, subject to regulatory review, via its broader global derivatives franchise and technology platform.

The FTSE Bitcoin Index and FTSE Ethereum Index are part of the FTSE Digital Asset Indices Series. The indices aim to capture the performance of bitcoin and ether, as determined by the FTSE DAR Reference Price.

According to a press statement, Cboe’s plans to list cash-settled index options on FTSE’s indices, subject to regulatory approvals, would help meet “growing investor demand for exchange-traded derivatives to gain and manage crypto exposures in a trusted, transparent and US-regulated trading environment”.

In addition, the collaboration is expected to introduce new products to Cboe’s existing digital assets initiatives, which currently include the listing and trading of cash-settled bitcoin and ether margin futures, along with spot bitcoin ETFs, where Cboe BZX Equities Exchange lists six out of the 11 ETFs listed domestically.

Cboe also submitted five of the eight recently SEC-approved rule filings to list ETFs tied to the price of ether.

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