Cboe Digital has unveiled plans to launch margin futures for Bitcoin and Ether starting January 11, 2024. This initiative positions Cboe Digital as the first US-regulated crypto native exchange and clearinghouse to facilitate spot and leveraged derivatives trading on a unified platform.

Cboe Digital will facilitate crypto spot and derivatives markets, backed by 11 firms from the crypto and traditional finance sectors. According to the official statement from the company, some of these firms include B2C2, Cumberland DRW, and StoneX Financial.

Cboe Eyes Expansion through Crypto Futures

John Palmer, the President of Cboe Digital, mentioned: "Our upcoming launch of margin futures represents a significant milestone for Cboe Digital, and we are grateful to have the support of such a remarkable group of industry partners who share our commitment to building trusted and transparent crypto markets."

"Futures have long served as valuable hedging instruments in the traditional financial markets, and we couldn't be more excited to extend access to this tool further into the digital assets markets and offer margined trading for our customers. We believe derivatives will foster additional liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and hedging opportunities in crypto."

Initially offering financially settled margined contracts, Cboe Digital plans to expand its product suite to include physically delivered products, pending regulatory approval. The launch of margin futures complements Cboe Digital's existing spot market offerings, including Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC.

NEWS: Cboe Digital to Launch Margined Bitcoin #BTC and Ether #ETH Futures on January 11, 2024, Backed by Crypto and Traditional Finance Players

Learn more: https://t.co/AqZHkfep5w

— CboeDigital (@CboeDigital) November 13, 2023

Cboe Expands Offerings Following Strong Quarter

This latest development followed Cboe's high financial performance during the third quarter. According to a report by Reuters, the surge in transaction volume, fueled by escalating volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term across various asset classes, propelled Cboe to beat analysts' predictions. The company reported a surge of 14% in revenue for its options segment.

The demand for Cboe's options products, driven by investors managing risk in the face of economic uncertainty, translated to a rise of 8% in the total average daily volume for options. This was accompanied by an increase of 12% in revenue per contract. Cboe's CEO, Fredric Tomczyk, attributed the positive performance to investors and traders relying on its index options and volatility products for effective risk management.