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Cboe Digital said in bitcoin-and-ether-futures-on-january-11-2024-backed-by-crypto-and-traditional-finance-players-301986086.html”>November 13 which will launch margin futures trading and clearing on both bitcoin (btc) and ethereum (eth) in the coming months.
The company noted that this model will allow investors to trade futures without posting full collateral upfront. According to reports from technology/exchange-operator-cboe-gets-nod-launch-leveraged-crypto-derivative-products-2023-06-05/”>Reuters In June, the current trading model requires investors to post full collateral for the corresponding futures contract.
Cboe Digital plans to initially offer financially settled margin contracts. However, it also pledged to offer physically settled products (meaning the buyer can receive cryptocurrency instead of traditional assets) if regulatory approval is granted.
The company said it will introduce margined bitcoin and ethereum on January 11, 2024 and noted it could introduce other products throughout the year.
Cboe Digital also noted that with the introduction of the new product, it would become the first US-regulated crypto-native combined exchange and clearinghouse to offer spot and leveraged derivatives trading on a single platform.
Several other companies from the traditional financial and crypto industries will offer support, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush.
Cboe heavily involved in crypto ETFs
Cboe Digital is part of Cboe Global Markets, which is actively involved in many other efforts to bridge crypto and traditional investments. The company’s Cboe BZX Exchange is notably involved in proposed rule changes for several pending spot bitcoin ETFs, including those from Invesco, VanEck, WisdomTree, Fidelity, and ARK Invest.
Cboe BZX Exchange also participates in some bitcoin futures ETFs, ethereum futures ETFs, and leveraged crypto futures ETFs that are currently available.
However, Cboe is not the only major player in this field. Nasdaq is also involved in certain offerings, specifically the BlackRock and Valkyrie bitcoin ETFs. Meanwhile, NYSE Arca is involved in Grayscale’s planned GBTC spot bitcoin ETF.
