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Cboe Outnumbers 1000 U.S. Listed Exchange-Traded Funds

Active ETF listings have experienced a surge of over 70% this year, fueled by the increased appetite for actively managed exchange-traded funds.

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Cboe surpasses a thousand exchange-traded funds (ETFs) listed in the United States
Cboe surpasses a thousand exchange-traded funds (ETFs) listed in the United States

Cboe Outnumbers 1000 U.S. Listed Exchange-Traded Funds

Cboe Global Markets Leads the ETF Revolution

Cboe Global Markets, Inc. has made history by becoming the second exchange to list over 1,000 U.S. exchange-traded funds (ETFs), a testament to its growing influence in the ETF market. This milestone comes as Cboe continues to innovate and lead in options-based ETFs and cryptocurrency-related products.

Cboe Global Indices, a leading derivatives-based index provider, plays a crucial role in this success. The company offers indexing capabilities and theoretical pricing services to numerous ETF issuers, helping to facilitate the creation and listing of new ETF products.

One of the key drivers of Cboe's growth is its pioneering work in options-based ETF product innovation. The exchange has developed innovative outcome-based ETFs that leverage options structures, such as the Cboe Bitcoin U.S. ETF Index, the first FLEX-ready bitcoin reference asset suitable for options contracts in outcome-based ETFs.

Cboe's focus on options-derived income ETFs is another factor contributing to its success. ETFs like the Global X Treasury Bond Enhanced Income ETF (TLTX), which writes weekly call options over treasury bond exposure, showcase Cboe’s role as a venue facilitating specialized options strategies within ETFs.

Advanced trading technology and product innovation also underpin Cboe’s leading position. The Titanium trading platform and proprietary products like S&P 500 and volatility index (VIX) options enable efficient and liquid markets for complex ETF strategies that blend equity, fixed income, and volatility exposure.

Cboe's early and continued leadership in cryptocurrency ETFs is another significant factor. By developing the first FLEX-ready bitcoin index, Cboe has positioned itself at the forefront of crypto-related ETF listings, catering to growing investor appetite for regulated and options-structured exposure to cryptocurrencies.

Partnerships with major ETF issuers, such as BlackRock, have also expanded thematic and actively managed ETFs on Cboe's venue. Innovative ETFs like the iShares Infrastructure Active ETF (BILT) highlight Cboe’s appeal as a trading venue for new ETF product launches targeting emerging sectors.

Graham Day, Executive Vice President and Chief Investment Officer at Innovator ETFs, is proud to have partnered with Cboe in bringing the Defined Outcome ETFTM category to market. As of today, over 115 unique issuers list ETF products on Cboe U.S., with the global network of exchanges spanning across the U.S., Canada, the UK, the European Union, and Australia.

The growth of Cboe's U.S. ETF listings has been impressive, with a 70% increase since the start of 2023. Derivative-based ETFs, such as outcome-based and premium writing ETFs, represent over 40% of all new U.S. ETF listings industry-wide this year. Cboe's experience as an options leader and innovator has contributed to the overall growth of the ETF ecosystem.

Adam Phillips, Chief Operating Officer of VanEck ETFs, believes Cboe has been a valuable partner in helping bring differentiated offerings to a broad range of investors and market participants. FLEX options, first developed by Cboe in 1993, are utilized by outcome-based ETF portfolio managers for constructing specific terms and downside protection, providing flexibility and customization in outcome-based ETFs.

As of now, Cboe U.S. is the second largest ETF listing venue in the U.S., with over 1,400 ETFs across its global network of exchanges. The exchange continues to attract tactical investors seeking buffered and risk-managed ETF outcomes, with demonstrated high elasticity of investor demand for differentiated risk buffers. Cathie Wood, Founder, Chief Investment Officer and Chief Executive Officer of ARK Invest, believes Cboe's leadership in options and crypto-based products mirrors ARK Invest's mission to open exponential growth opportunities to all investors.

In summary, Cboe’s unique factors fueling its growth as a top ETF listing venue include pioneering options-based ETF product innovation (especially outcome-structured and income-focused ETFs), early adoption and infrastructure for cryptocurrency-related ETFs, advanced trading technology supporting complex derivatives, and strong collaboration with issuers broadening ETF offerings in thematic and active management categories.

  1. Cboe Global Indices, as a leading derivatives-based index provider, offers indexing capabilities and theoretical pricing services that help facilitate the creation and listing of new exchange-traded funds (ETFs).
  2. The exchange, Cboe Global Markets, has developed innovative outcome-based ETFs like the Cboe Bitcoin U.S. ETF Index, the first FLEX-ready bitcoin reference asset acceptable for options contracts in outcome-based ETFs.
  3. Cboe's focus on options-derived income ETFs, such as the Global X Treasury Bond Enhanced Income ETF (TLTX), highlights its role as a venue facilitating specialized options strategies within ETFs.
  4. Cboe's expertise in cryptocurrency-related ETFs, resulting from the development of the first FLEX-ready bitcoin index, solidifies its position at the forefront of derivatives-based crypto ETF listings.

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