Cboe Digital has made a significant move in the world of cryptocurrency by launching margined Bitcoin and Ether futures.
This exciting development has been made possible through collaboration with industry giants such as Blockfills, DV Trading LLC, Jump Trading Group, Marex, and Wedbush.
What sets Cboe Digital apart is its offering of both spot and leveraged derivatives trading on a single platform.
This expansion comes hot on the heels of the successful introduction of financially settled margined contracts for Bitcoin and Ether.
Cboe Digital’s ambition doesn’t stop here, as it aims to broaden its product range by including physically delivered products, pending regulatory approval.
This strategic decision complements the platform’s existing spot market offerings, which already include a variety of cryptocurrencies like Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC.
John Palmer, President of Cboe Digital, expressed his excitement about the future of crypto, noting that as more investors flock to this asset class, there will be an increasing demand for derivatives.
These derivatives will serve as essential tools to help manage crypto exposures, hedge risks, and improve capital and operational efficiencies.
This announcement follows Cboe’s impressive financial performance in the third quarter, where transaction volumes across asset classes surpassed analysts’ expectations.
The surge in demand for Cboe’s options products, driven by investors seeking to manage risk amid economic uncertainty, led to a substantial increase in revenue and average daily volume for options.
It’s worth mentioning that Cboe had already received approval from the US Commodity Futures Trading Commission to introduce leveraged derivatives on its digital trading platform.
This regulatory green light provides traders with the opportunity to engage in crypto futures with reduced upfront collateralized capital, making it more accessible and appealing.
In parallel with Cboe’s advancements, the SEC has also taken significant steps in the cryptocurrency space.
The regulatory body recently approved 11 Bitcoin Exchange-Traded Funds (ETFs), marking a momentous milestone for cryptocurrency investors.
These ETFs will be listed on prominent US stock exchanges, opening doors for widespread trading accessibility.
The SEC’s approval followed rigorous scrutiny of applications from well-known asset management companies, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton.
This development indicates the growing acceptance and integration of cryptocurrencies into the traditional financial landscape.