On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing for margin futures on Bitcoin (BTC) and Ethereum (ETH).
The company stated that this model will enable investors to trade futures without having to post full collateral upfront. In June, Reuters reported that the current trading model requires investors to post complete collateral for the relevant futures contract.
Cboe Digital plans to offer financially settled margined contracts initially, but also expressed its commitment to offering physically settled products, pending regulatory approval. This means that the buyer can receive cryptocurrency instead of traditional assets.
The company announced the introduction of margined Bitcoin and Ethereum on Jan. 11, 2024, and hinted at the potential introduction of other products throughout the year.
In addition, Cboe Digital emphasized that with the introduction of the new product, it would become the first U.S.-regulated crypto native combined exchange and clearinghouse to offer both spot and leveraged derivatives trading on one platform.
Several other companies in the crypto and traditional financial industries will offer support for this endeavor, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush.
Cboe highly involved in crypto ETFs
Cboe Digital is part of Cboe Global Markets, which is actively involved in various efforts to bridge crypto and traditional investing. 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 certain Bitcoin futures ETFs, Ethereum futures ETFs, and leveraged crypto futures ETFs that are currently available.
However, Cboe isn’t the only major player in this field. Nasdaq is also involved in certain proposals, specifically spot Bitcoin ETFs from BlackRock and Valkyrie. Meanwhile, NYSE Arca is involved with Grayscale’s planned GBTC spot Bitcoin ETF.