The contract is the first futures based on the CoinDesk Bitcoin Price Index (XBX), and it offers market participants a cost-efficient tool to precisely hedge or gain exposure to bitcoin without the need for physical delivery and without having to trade directly in multiple markets or spot exchanges that may be less established.

The index provides a USD-denominated reference rate for the spot price of bitcoin (XBT). It leverages real-time prices from multiple constituent exchanges to provide a representative spot price. Each constituent exchange is weighted proportionally to its trailing 24-hour liquidity, with adjustments for price variance and inactivity. Known for being the longest-running, and one of the most trusted benchmarks for bitcoin, XBX has been in continuous operation since 2014, and serves as the benchmark for approximately $17 billion of AUM in investment vehicles.

To retail investors: Futures contracts based on bitcoin may pose specific risks. Such risks may arise from greater volatility in prices resulting from a range of factors. Those risks could in turn affect financial outcomes associated with maintaining required margins or any losses at final contract settlement.