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Cboe plans to launch margined futures for Bitcoin (BTC) and Ethereum (ETH), according to details in a press release published on Monday.
The company has earmarked the products launch for January 11, 2024, with these going live on Cboe Digital, the firm’s crypto arm.
A critical step for crypto growth
BTC and ETH margined futures on Cboe has attracted the support of 11 trading firms on its debut. The platforms are from across crypto and traditional finance. They include B2C2, Wedbush, BlockFills, CQG, Jump Trading Group, Cumberland DRW, Talos, and Trading Technologies, the firm announced.
Going live with the products would mean Cboe Digital becomes the first US-regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives on a single platform.
John Palmer, President of Cboe Digital, said in a statement:
“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.”
He noted that futures have been “valuable hedging instruments in the traditional financial markets,” and that the launch extends these tools to the crypto space.
“We believe derivatives will foster additional liquidity and hedging opportunities in crypto and represent the next critical step in this market’s continued growth,” Palmer added.
While the Cboe Digital’s offer will initially consist of financially settled Bitcoin and Ether margined futures, there are plans to expand these to physically delivered products. This will however be subject to the platform receiving necessary regulatory approvals.
Meanwhile, the new products add to the company’s spot derivatives offerings of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) and the stablecoin USD Coin (USDC).
Cboe signaled its crypto intentions with the acquisition of digital assets exchange in 2021 – a deal that was formally sealed in May last year.
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