Cboe Digital, a Cboe Global Markets Inc. subsidiary that operates a digital asset exchange, has obtained regulatory clearance to launch Bitcoin and Ether futures contracts with margin trading. The Commodity Futures Trading Commission (CFTC) gave the green light for Cboe Digital to offer both physically and financially settled margin contracts in 2024.
This development will introduce a conventional structure to new assets and allow traders to take positions with less capital. The approval also enables traditional financial firms to access Bitcoin and Ether futures without intermediaries for custody. Cboe will handle the settlement and margin trading as the only US-registered exchange that provides spot and derivatives trading.
Cboe Aims to Improve Its Crypto Services
Before the approval, Cboe offered crypto futures that required full collateralization, meaning that traders had to deposit the full value of a contract before trading. Margin trading is different as users can trade without having the full funds. Moreover, the new approval will enable Cboe to support traditional firms that want to settle their assets physically without relying on custody services from intermediaries.
Cboe Digital’s President, John Palmer, thanked the CFTC for their collaboration and emphasized the importance of having a spot market along with margin trading. He said that it eliminates the need for participants to hold or manage the physical assets themselves.
The launch of margin contracts is in line with Cboe Digital’s objective to increase its range of tokens and expand its customer base, which mainly consists of professional and institutional players. By allowing margin trading, Cboe Digital aims to further establish itself as a leading exchange for digital asset trading in the United States.
Besides margin futures, Cboe Digital’s spot market supports trading in Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC. Cboe Digital’s integrated spot and derivatives markets are based on responsible innovation.
