Cboe Digital has unveiled plans to launch margin futures on Bitcoin and Ether starting January 11, 2024. This initiative positions Cboe Digital as the first US-regulated crypto native exchange and clearinghouse to facilitate spot and leveraged derivatives trading on a unified platform.

Cboe Digital will facilitate crypto spot and derivatives markets, backed by support from 11 industry-leading firms spanning the cryptocurrency and traditional finance sectors. According to the official statement from the company, some of the firms include B2C2, Cumberland DRW, StoneX Financial, and others.

Cboe Digital's Margin Futures Launch

John Palmer, the President of Cboe Digital, mentioned: "Our upcoming launch of margin futures represents a significant milestone for Cboe Digital, and we are grateful to have the support of such a remarkable group of industry partners who share our commitment to building trusted and transparent crypto markets."

"Futures have long served as valuable hedging instruments in the traditional financial markets, and we couldn't be more excited to extend access to this tool further into the digital assets markets and offer margined trading for our customers. We believe derivatives will foster additional liquidity and hedging opportunities in crypto."

Initially offering financially settled margined contracts, Cboe Digital plans to expand its product suite, potentially including physically delivered products, pending regulatory approvals. The launch of margin futures complements Cboe Digital's existing spot market offerings, including Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC.

NEWS: Cboe Digital to Launch Margined Bitcoin #BTC and Ether #ETH Futures on January 11, 2024, Backed by Crypto and Traditional Finance Players

Learn more: https://t.co/AqZHkfep5w

— CboeDigital (@CboeDigital) November 13, 2023

CBOE Expands Offerings Following Strong Quarter

This latest development follows Cboe's high performance during the third quarter. According to a report by Reuters, the surge in transaction volumes, fueled by escalating volatility across various asset classes, propelled Cboe to beat analysts' predictions. The company reported a surge of 14% in revenue for its options segment.

The demand for Cboe's options products, driven by investors managing risk in the face of economic uncertainty, translated to an 8% rise in the total average daily volume in options. This was accompanied by an increase of 12% in revenue per contract.

Cboe's CEO, Fredric Tomczyk, attributed the firm's success to investors and traders relying on the suite of index options and volatility products for effective risk management in a volatile market. Tomczyk emphasized talent development and succession planning as key priorities for the company's future.