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 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.

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 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.