SUPERNEWS

Macro

Cboe Hits 1,000+ ETF Listings, Leads in Innovation & Access

Cboe surpasses 1,000 ETF listings, expanding financial access with innovative offerings including spot bitcoin ETFs and zero-day options.

By Max Weldon

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5/7, 08:55 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
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Key Takeaway

  • Cboe Global Markets now lists over 1,000 ETFs, including innovative derivatives overlay and thematic ETFs, enhancing investment accessibility.
  • Proposed SEC innovation could transform mutual funds into ETFs, offering investors more flexibility and choice in their portfolios.
  • As the second-largest ETF listing venue in the U.S., Cboe's global network promotes unparalleled liquidity and capital access for issuers.

ETF Innovation and Expansion

Exchange-Traded Funds (ETFs) have become a cornerstone of investment strategies, offering a wide array of options for both retail and professional investors. The evolution of ETFs has significantly democratized access to various investment themes and strategies, including advanced options strategies. This expansion has been instrumental in enhancing risk management, liquidity, and returns across the board. Cboe Global Markets has been at the forefront of this innovation, recently surpassing 1,000 ETF listings. Their offerings range from derivatives overlay ETFs and thematic ETFs to the pioneering spot bitcoin ETFs. Cboe's proposal to the SEC about creating an ETF share class for mutual funds could further revolutionize the investment landscape by merging the benefits of mutual funds and ETFs.

Cboe's Dominance in the ETF Market

Cboe's position as a leading ETF listing venue is underscored by its extensive network and innovative offerings. It stands as the second-largest ETF listing venue in the U.S. and holds leading positions in Europe and Canada. The exchange's commitment to providing access to capital, liquidity support, and comprehensive post-launch services has made it a preferred choice for ETF issuers. Cboe's unique ability to offer cross-listing across multiple national exchanges enhances global capital access and liquidity, making it an attractive platform for launching ETFs.

Zero-Day Options Surge

The trading of zero-day options (0DTE), equity derivatives that expire within 24 hours, has seen a remarkable boom, with the notional value of contracts tied to the S&P 500 reaching approximately $862 billion in April. Despite concerns over potential market volatility and the high risk of loss for retail investors, the popularity of 0DTE options continues to grow. These options, initially favored by high-frequency traders, are now widely used by a diverse range of investors for hedging and speculative purposes. The expansion of 0DTE options to include major indexes and ETFs has sparked debate over their impact on market dynamics and the potential for future expansion to cover single stocks.