Cboe Digital to Initiate Bitcoin and Ether Margin Futures Trading from January 2024
Summary:
Cboe Digital has declared the start of Bitcoin and Ether margin futures trading from January 11, 2024. It will be the first regulated crypto-native exchange in the US to offer both spot and leveraged derivatives trading together. Plus, the feature of margin trading will enable clients to trade futures without submitting full collateral. Major firms like B2C2, BlockFills, Cumberland DRW, and Talos are supporting the initiative. Cboe also plans to extend into physically delivered products upon obtaining regulatory consent. Concurrently, the cryptocurrency sector awaits the Securities and Exchange Commission's decision on twelve applications for BTC spot exchange-traded funds.
Cboe Digital recently broadcasted that it will commence margin futures trading for Bitcoin (BTC) and Ether (ETH) from January 11, 2024. Positioned as the first regulated crypto-native trading and clearinghouse in the US, it will provide both spot and leveraged derivatives trading on a singular platform, according to the statement. Margin trading boosts capital efficiency as it permits traders to deal in futures without full collateral submission. The provision of spot and derivative trading in one place also promotes efficiency. Cboe Digital's president, John Palmer, stated that the introduction of derivatives would cultivate additional liquidity and hedging possibilities in the crypto market, marking a crucial progress.
Cboe Digital caters to both individual and institutional traders. The new feature will be backed by eleven firms, incorporating both cryptocurrency and traditional finance firms such as B2C2, BlockFills, Cumberland DRW, and Talos, among others.
The margin futures trading got green-lighted by the US Commodity Futures Trading Commission (CFTC) in June, receiving applause from Christy Goldsmith Romero, CFTC Commissioner, for maintaining the traditional futures market structure and regulations. Moreover, Cboe Digital intends to unfold into physically delivered products, pending regulatory affirmation.
Cboe Digital is set to enforce a Default Liquidity Incentive Program, which could come into play as soon as November 17. The open interest in BTC futures is witnessing a boom on the Chicago Mercantile Exchange (CME), a Cboe Digital competitor. In October, CME became the second-largest BTC futures exchange trailing Binance and recorded an all-time high on November 3.
Simultaneously, the industry looks forward to the decision of the Securities and Exchange Commission on twelve BTC spot exchange-traded funds applications. The approval period initiated on November 9.
Published At
11/13/2023 7:00:05 PM
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