CBOE launches BTC and ETH margin futures trading in January with support from 11 companies

Cboe Digital has announced the launch date for margin futures trading on Bitcoin (BTC) and Ether (ETH): January 11, 2024. The regulated crypto-native exchange and clearinghouse will be the first in the United States to offer both spot – as well as leveraged derivatives offering trading on a single platform, it said in a statement.

Margin trading increases capital efficiency by allowing customers to trade futures without posting full collateral. The ability to conduct spot and derivatives trading on the same platform also increases efficiency.

John Palmer, President of Cboe Digital, said:

“We believe derivatives promote additional liquidity and hedging opportunities in the crypto space and represent the next critical step in the continued growth of this market.”

Cboe Digital offers trading for individuals and institutions. Eleven firms, including crypto and traditional finance firms, will support the new feature from its launch. These include B2C2, BlockFills, Cumberland DRW and Talos.

Related: Talos raises $105 million, becoming latest crypto unicorn worth $1.3 billion

Cboe Digital received approval for margin futures trading from the U.S. Commodity Futures Trading Commission in June. At the time, CFTC Commissioner Christy Goldsmith Romero praised Cboe Digital for “operating within the parameters of the traditional futures market structure and regulatory framework.”

Cboe Digital said it plans to eventually expand to physically delivered products, subject to regulatory approval.

Cboe Digital will launch a standard liquidity incentive program, effective as early as November 17th⚠️ pic.twitter.com/NlSC0xH8Ff

— MB (@741trey) November 8, 2023

Open interest in BTC futures on the Chicago Mercantile Exchange, a competitor of Cboe Digital, has surged. CME became the second-largest BTC futures exchange after Binance in October and hit a record high on November 3rd.

Meanwhile, the industry awaits a decision from the Securities and Exchange Commission on 12 applications for spot BTC exchange-traded funds. The eight-day window for approvals began on November 9th.

Magazine: Cryptocurrency trading addiction: What to look out for and how to treat it

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers