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Cboe Digital to Launch BTC and ETH Futures Margin Trading

Cboe Digital has announced that it will launch margin futures trading on Ether and Bitcoin on January 11, 2024. Cboe Digital will initially provide Bitcoin and Ether margined contracts with financial settlement. Trading futures on the margin model allows for improved capital efficiency by allowing consumers to trade futures without posting the whole collateral upfront.

Why does it matter?

The Cboe Digital spot crypto market already allows for trading in Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC, and the addition of Bitcoin and Ether futures on margin indicates success with the other assets. It also hopes to add physically sent products to its lineup sometime in the future, pending the necessary regulatory approvals.

The forthcoming launch will make Cboe Digital the first U.S.-based, native crypto exchange and clearinghouse to support both spot and leveraged derivatives trading. A number of top firms from both the cryptocurrency and traditional financial marketplace will be supporting the launch. They include B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush.

For a long time, investors in traditional markets have used futures to hedge against market risks. The introduction of derivatives is a crucial next step for the development of the cryptocurrency market, as it will inject more liquidity and hedging opportunities. Cboe Digital’s consolidated spot and derivatives trading platform is a game-changer since it will allow users easier access to both markets, which will help improve capital and operational efficiencies.

With the crypto market on an upward trajectory since October, there is a growing appetite for digital assets among investors. Furthermore, the planned futures listing in January will come as the Bitcoin halving event, set for April 2024, draws near.