#1 Supplier
in Australia
by over 6000 clients
Book A Free Consultation

CBOE Set to Introduce Margin Futures Trading for BTC and ETH

CBOE Launches New Crypto Trading Feature

CBOE introduces a new trading feature amid growing excitement for cryptocurrency financial products in the United States

Cboe Digital has revealed the launch date for BTC and Ether margin futures trading: January 11, 2024.

The regulated crypto-native exchange and clearinghouse are set to accomplish a U.S. milestone by offering both spot and leveraged derivatives trading on a unified platform, as stated in an official announcement.

Margin trading augments capital efficiency by enabling users to partake in futures trading without necessitating full collateral. The integration of spot and derivative trading on one platform is projected to further streamline operational efficiency.

John Palmer, President of Cboe Digital, commented:

“We anticipate derivatives will foster increased liquidity and hedging prospects in crypto, representing the next pivotal stage in this market’s ongoing expansion.”

Cboe Digital extends trading services to both individual and institutional clients. The new trading functionality is backed by eleven entities, encompassing both cryptocurrency and traditional financial firms like B2C2, BlockFills, Cumberland DRW, and Talos, among others.

Having secured authorization for margin futures trading from the U.S. Commodity Futures Trading Commission in June, Cboe Digital earned praise from CFTC Commissioner Christy Goldsmith Romero for adherence to conventional market structures and regulatory frameworks. The platform expresses intentions to explore physically delivered products subject to regulatory approval.

The open interest in BTC futures has been on the rise at the Chicago Mercantile Exchange, a direct rival of Cboe Digital. In October, the CME emerged as the second-largest BTC futures exchange, trailing only behind Binance, and hit a record high on November 3.

Simultaneously, the industry eagerly awaits a decision from the Securities and Exchange Commission regarding 12 applications for spot BTC exchange-traded funds. The approval timeline spans eight days, commencing on November 9.

About the author

Leave a Reply