Cboe Digital has announced the launch date for bitcoin (btc) and Ether (eth) margin futures trading: January 11, 2024. The regulated crypto-native exchange and clearinghouse will become the first in the United States to offer both spot and leveraged derivatives. operate on a single platform, bitcoin-and-ether-futures-on-january-11-2024-backed-by-crypto-and-traditional-finance-players-301986086.html” target=”_blank” rel=”noopener nofollow”>saying in a sentence.
Margin trading increases capital efficiency by allowing clients to trade futures without posting full collateral. The ability to conduct spot and derivatives trading on the same platform will also increase efficiency.
Cboe Digital President John Palmer said:
“We believe derivatives will foster additional liquidity and hedging opportunities in cryptocurrencies and will represent the next critical step in the continued growth of this market.”
Cboe Digital offers trading operations for individuals and institutions. Eleven companies, including traditional and crypto financial companies, will support the new capability upon launch. They include B2C2, BlockFills, Cumberland DRW, and Talos, among others.
Related: Talos raises $105 million to become latest crypto unicorn valued at $1.3 billion
Cboe Digital received approval for margin futures trading from the US Commodity Futures Trading Commission (CFTC) in June. At the time, CFTC Commissioner Christy Goldsmith Romero praised Cboe Digital for “operating within the parameters of the traditional futures market structure and regulatory framework.”
Cboe Digital said it eventually plans to expand to physically delivered products, subject to regulatory approval.
Cboe Digital to Adopt Default Liquidity Incentive Program, Effective November 17 pic.twitter.com/NlSC0xH8Ff
-MB (@741trey) November 8, 2023
btc futures open interest has increased on the Chicago Mercantile Exchange (CME), which is a competitor of Cboe Digital. The CME became the second largest btc futures exchange after Binance in October and hit a record high on November 3.
Meanwhile, the industry is awaiting a decision from the Securities and Exchange Commission on 12 btc spot exchange-traded fund applications. The eight-day deadline for approvals began on November 9.
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