Cboe Digital, the first U.S. regulated cryptocurrency exchange and clearinghouse, has received approval from the Commodity Futures Trading Commission (CFTC) to launch margined futures contracts on Bitcoin and Ether. This expansion of their product offering will allow customers to trade futures in a less capital-intensive way, as they will only be required to provide a percentage of the total posted as collateral. The trades will be executed and cleared through an approved set of member Futures Commission Merchants (FCMs) with Cboe Digital’s clearinghouse acting as the central counterparty.
Cboe Digital’s unique platform allows for trading of both spot and margin futures, bringing greater cost and operational efficiencies to enhance customers’ trading experience. In addition to margin futures, the spot market supports trading in Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC. The vision of Cboe Digital is to bring trust and transparency to the cryptocurrency spot and derivatives markets.
John Palmer, President of Cboe Digital, expressed gratitude to the CFTC for working with them as they continue to build a transparent, U.S. regulated cryptocurrency marketplace that welcomes intermediaries. Palmer also emphasized the value of derivatives as a tool for investors to gain market exposure and manage risk.
Cboe Global Markets, the parent company of Cboe Digital, is a leading provider of market infrastructure and tradable products. They are committed to operating a trusted, inclusive global marketplace and provide trading solutions and products in multiple asset classes across North America, Europe, and Asia Pacific.
Cboe Digital offers individuals and institutions a single, innovative platform to access cryptocurrency spot and futures markets. They combine professional tools, advanced technology, sophisticated regulatory oversight, and a diverse product set to offer compliant, capital markets friendly workflows to digital market participants.
Overall, the approval to launch margin futures contracts on Bitcoin and Ether by Cboe Digital is a significant development in the cryptocurrency market. It allows for more accessible trading and provides investors with the opportunity to manage risk more effectively.