CBOE will launch BTC and ETH margin trading in January with the support of 11 organizations

Cboe Digital has announced the start date for Bitcoin (BTC) and Ether (ETH) margin futures trading: January 11, 2024. A regulated crypto-native exchange and clearinghouse will be the first in the United States to offer both spot and leveraged derivatives. Trading on one platform, he said in a statement.

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

John Palmer, president of Cboe Digital, said:

“We believe that derivatives will provide additional liquidity and hedging opportunities in crypto and represent the next critical step in the continued growth of this market.

Cboe Digital offers marketing to individuals and institutions. Eleven organizations, including crypto and traditional financial firms, will support the new capability from the start. They include B2C2, BlockFills, Cumberland DRW and Talos, among others.

Related: Talos raises $105M to become latest crypto unicorn valued at $1.3B

Cboe Digital received a license for margin futures trading from the US 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 into physically delivered products, subject to regulatory approval.

Cboe Digital to adopt default liquidity incentive program effective Nov 17 pic.twitter.com/NlSC0xH8Ff

— MB (@741trey) November 8, 2023

Open interest in BTC futures has been increasing on the Chicago Mercantile Exchange, which is Cboe's digital competitor. CME became the second largest BTC futures exchange in October after Binance, which hit a record high on November 3.

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

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