Cboe Digital to Launch Margined Bitcoin and Ether Futures in January 2024

Cboe Digital Monday announced its plans to launch trading and clearing in margin futures on Bitcoin and Ether, beginning January 11, 2024. With this launch, Cboe Digital will become the first U.S.-regulated crypto native combined exchange and clearinghouse to enable both spot and leveraged derivatives trading on a single platform.

Cboe Digital will initially offer financially settled margined contracts on Bitcoin and Ether and plans to expand its product suite to include physically delivered products at a later date, subject to regulatory approvals. The margin model is designed to allow customers to trade futures without posting the full collateral up front, thereby providing greater capital efficiency compared to trading futures on a non-margined basis. Significantly, Cboe Digital's unified spot and derivatives trading platform will also help enable customers to easily access both markets, creating opportunities for additional capital and operational efficiencies.

Cboe Digital's planned launch of margin futures will be supported by leading firms across the cryptocurrency and traditional financial marketplace, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies and Wedbush.

"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," said John Palmer, President of Cboe Digital. "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 and represent the next critical step in this market's continued growth."

Cboe Digital's planned launch of margin Bitcoin and Ether futures will complement its existing offering of Bitcoin, Bitcoin Cash, Ether, Litecoin and USDC trading on its spot crypto market. Contract margin requirements for the new futures will be published on Cboe Digital's website daily, along with standardized portfolio analysis of risk (SPAN®) compatible risk parameter files that can be used to replicate margin calculations.