CBOE Expanding Crypto Derivative Suite with Bitcoin and Ether Products in January

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Jimmy Aki

Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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November 14, 2023 09:00 EST

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The Chicago Board Options Exchange (CBOE) is set to roll out Bitcoin and Ethereum margin futures in the early days of 2024.

Making its plans clear in a press release, the company stated that it would execute this initiative through its CBOE Digital service platform.

CBOE Digital will grant access to financially settled margin contracts for the two predominant cryptocurrencies in the initial phase.

However, it plans to expand its crypto derivative suite offerings once regulatory approval is secured.

Breaking: @CBOE to launch crypto margin futures in the USA January 11 2024.

Cboe Digital to become first U.S. regulated crypto native exchange and clearinghouse to enable both spot and leveraged derivatives trading on a single platform.

Bullish news for Spot ETF approval with… pic.twitter.com/PPXJJF9kVa

— MartyParty (@martypartymusic) November 13, 2023

Providing a definite date when the service is expected to roll out, CBOE Digital said eligible investors will be able to access its Bitcoin and Ether futures contracts starting January 11, 2024.

The margin model will enable investors to trade futures without necessarily posting the full collateral of their investments upfront.

This move aligns with its long-term strategy to become the first US-regulated crypto-native combined exchange and clearinghouse.

According to the platform, it aims to provide users access to both spot and leveraged crypto derivatives all on a single platform.

While noteworthy, CBOE Digital is not embarking on this venture alone. According to its press release, the company would rapidly onboard 11 firms from the crypto and traditional financial landscape on the first day of launch.

Names like B2C2, CQG, Cumberland DRW, Jump Trading, Marex, Stonex Financial, and five others are expected to be the pioneers of this new service offering.

Speaking on the development, CBOE Digital President John Palmer discussed the importance futures trading has played in the traditional financial marketplace.

According to Palmer, onboarding this financial tool would significantly create much-needed liquidity and hedging opportunities in crypto.

Besides this new offering, CBOE Digital already offers Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and USDC trading on its spot trading market.

CBOE Digital Offering Tying into Bitcoin ETF Approval?

The United States has been torn on several fronts on how to handle rising cryptocurrency interests.

While several government agencies like the Securities and Exchange Commission (SEC) have adopted a regulation-by-enforcement style, industry practitioners have called for a more robust supervision of the fast-rising industry.

CBOE Digital’s recent initiative shows strong interest in these decentralized currencies. Its striking resemblance to traditional financial market offerings is blurring the lines, making it increasingly difficult to keep mainstream investors out of the crypto pie.

Among the key players actively pursuing an Exchange-Traded Fund (ETF) is the $11 trillion asset under management (AUM) investment firm BlackRock.

Several months ago, BlackRock signaled its intent to the US SEC for a Bitcoin spot ETF. However, there’s a growing belief that SEC approval is imminent in the coming months.

Scoop: @BlackRock growing increasingly confident @SECGov will approve its BTC ETF by January, sources tell @FoxBusiness more now w @LizClaman

— Charles Gasparino (@CGasparino) November 9, 2023

FOX Business’ Charles Gasparino has shed light on BlackRock’s increasing confidence regarding the SEC’s approval of its Bitcoin spot ETF, with expectations set for January 2024.