Cboe Settles Bitcoin Futures Contract with April Expiration

Cboe, the US futures exchange that provides Bitcoin futures contracts, announced the settlement of its XBT J futures contract with April expiry.

Anatol Antonovici,
10 mins ago


Cboe Global Markets (Cboe), the futures exchange that launched Bitcoin futures trading in December 2017, conducted the settlement of the Cboe Bitcoin (XBT) futures contract with April expiry, which is the fourth contract settlement carried out since its introduction.

The settlement price was displayed in line with the Gemini1 Exchange Bitcoin auction by 4:00 pm on April 18, 2018, at $8,055.68. On Coinmarketcap, Bitcoin’s price was $7,913 at that time.

Bitcoin futures contracts are cash-settled and meant to allow investors to develop effective strategies based on the settlement of a single auction price provided by crypto exchange Gemini. For comparison, the Chicago Mercantile Exchange (CME), which launched Bitcoin futures products during the same period, depends on the so-called Bitcoin Reference Rate. BRR is determined from the average price of several crypto exchanges (including Bitstamp, GDAX, itBit, and Kraken) every day between 3:00 pm and 4:00 pm London time.

Cboe Bitcoin futures represent a type of investment product that does not directly imply ownership of Bitcoin but focuses on its price, using the cryptocurrency as an underlying asset. It was launched on December 10, 2017, about a week before CME’s similar product. As of April 18, over 557,000 Bitcoin futures contracts have been traded across expiries since the day of launch, which equals a notional value of about $5.7 billion.

Cboe’s Bitcoin futures are trade exclusively on its platform. However, investors can access the instruments via other online platforms, among them eTrade, TD Ameritrade, InteractiveBrokers, TradeStation, Wedbush Futures, PhillipCapital, Advantage Futures, and RJO Futures.

The previous settlement was conducted on March 15, with the settlement price determined at $8,236.11. The next one is scheduled for May 16, 2018.

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