Institutional adoption of cryptocurrencies is gaining momentum. In a recent development, the Chicago Options Exchange Board (CBOE) is preparing to launch its new products. These new products will be futures based on Bitcoin and Ethereum. Cboe plans to achieve this by January 2024.
Cboe to reach new milestone in US
Chicago Board Options Exchange (CBOE) received a license to serve crypto clients six months ago. In this vein, it was planning to offer margined Bitcoin and Ethereum futures contracts. Now it has announced that it is ready to launch the new offer by January 11, 2024. It aims to realize this move with the support of traditional finance investors. Today, Global Markets reporter Walter Bloomberg shared that CBOE will potentially launch these transactions. Once it does so, CBOE will enable both spot and leveraged derivatives trading on a single platform. Thus, in this sense, it will be the first regulated crypto native exchange and clearing house in the USA.
The ongoing CBOE Futures offering has received support from approximately 11 crypto and traditional finance companies, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, Trading Technologies and Wedbush. The exchange sees this potential move for CBOE Futures as part of its commitment to deliver trust, transparency and responsible innovation to its users and the entire crypto industry, particularly the spot and derivatives markets. In the announcement, the stock exchange included the following statement:
Cboe Digital offers an intermediary-inclusive model. Ensures separation of duties to avoid conflicts of interest. It is also using an integrated exchange-clearing house model that will allow it to potentially introduce more unique and groundbreaking offerings in 2024.
Launch of Bitcoin and Ethereum futures products
Notably, CBOE will release products sequentially. The focus of these products will be financially settled margin contracts on Bitcoin and Ethereum. Meanwhile, the exchange board is awaiting regulatory approvals. Additionally, depending on feedback, expansion of the CBOE Futures offering is possible. A notable feature of the margin model is its capacity to accommodate futures trading without having to update full margin in advance, which is often a requirement in other systems. The CBOE Futures product will increase capital efficiency, among its many benefits. It will also facilitate investors’ access to spot and derivative markets.
This development is a milestone in the merger of traditional finance and the digital assets ecosystem. cryptokoin.comAs you follow from , Bitcoin and altcoins are increasingly accepted in the wider financial world. Additionally, corporate companies are adopting it more. The latest development is a clear example of this. Meanwhile, there are numerous spot Bitcoin ETF applications awaiting approval from the U.S. Securities and Exchange Commission (SEC). If these are approved, the crypto world will move to a new phase.
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