Futures products for Bitcoin and Ethereum are scheduled to debut on the Chicago Board of Options Exchange (Cboe) in January 2024.
Cboe, also known as Chicago Board Options Exchange, has announced that it intends to offer margined Bitcoin and Ethereum futures contracts to its crypto clientele on January 11, 2024.
This endeavor has garnered the support of prominent investors in both traditional finance and cryptocurrencies. Cboe has been preparing to launch the offering for nearly six months.
Cboe Will Reach a New US Milestone
Earlier today, Global Markets reporter Walter Bloomberg announced via the X app that Cboe may launch margin futures trading and clearing on BTC and ETH.
Cboe is expected to become the first regulated crypto native exchange and clearinghouse in the United States, facilitating spot and leveraged derivatives trading on a single platform if all proceeds according to plan.
The exchange views this prospective action by Cboe Futures as an illustration of its dedication to providing users and the entire crypto industry, particularly the spot and derivatives markets, with trust, transparency, and responsible innovation.
“Cboe Digital presents an intermediary-inclusive model, ensures separation of duties to avoid conflicts of interest, and uses an integrated exchange-clearinghouse model that will allow it to potentially bring more unique and groundbreaking offerings in 2024,” the announcement stated.
Approximately 11 crypto and traditional finance firms have expressed their support for the ongoing Cboe Futures offering, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, Trading Technologies, and Wedbush.
Gradual Futures Product Launch
The products will be released in stages, focusing on financially settled, margined Bitcoin and Ethereum contracts.
Cboe Futures may expand its product offering to include tangibly delivered products contingent on customer feedback and, more significantly, regulatory approvals.
A notable characteristic of the margin model is its ability to facilitate futures trading without necessitating the pre-updating of complete collateral, a prerequisite typically imposed by alternative systems.
Additionally, the Cboe Futures product will facilitate investor access to the spot and derivatives markets and increase capital efficiency, among other advantages.
This represents an additional turning point in the convergence of conventional finance and the ecosystem of digital assets.
The increasing recognition and implementation of cryptocurrencies in the broader financial sector is evident in the multitude of applications submitted to the United States Securities and Exchange Commission (SEC) for spot Bitcoin ETFs.
