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Home » Cboe Digital to offer Bitcoin and Ethereum futures in 2024

Cboe Digital to offer Bitcoin and Ethereum futures in 2024

Cboe Digital, a regulated platform in the United States that provides access to cryptocurrency derivatives markets, will begin offering margined futures on Bitcoin (BTC) and Ether (ETH), Ethereum’s native cryptocurrency, starting in January 2024.

The company Indian that will be that first combined cryptoasset-based exchange and clearinghouse. This creates the opportunity to enable both spot and leveraged derivatives trading on the same platform.

Cboe Digital, owned by Cboe Global Markets, one of the world’s leading exchanges, presents a model that involves intermediaries, ensures separation of duties to avoid conflicts of interest and uses an integrated clearinghouse model, he explains.

Clearinghouses are financial institutions responsible for processing and clearing transactions involving futures, options, and other derivatives. In futures, he takes on the position of seller in each contract. This means that if the buyer of a futures contract defaults on their obligations, the clearinghouse takes delivery of the underlying asset.

Basically the platform will offer margin futures contracts on BTC and ETH, although the plan is to go further, with the aim of offering products delivered in cash in the future, as highlighted. The company offers trading solutions and products across multiple asset classes in North America, Europe and Asia Pacific.

Spot-settled Bitcoin futures contracts are an agreement in which investors receive Bitcoins instead of cash in fiat currency at the end of a set period. When a user wants to open a position, he has to pay the amount in BTC and when the contract expires, the user also receives the profit in BTC.

“The margin model is designed to allow clients to trade futures without posting full collateral upfront, providing greater capital efficiency compared to zero-margin futures trading.”

Cboe Digital, cryptoasset trading platform.

Since it is a unified spot and derivatives trading platform, this is also the case will make it easier for users to access both markets“Creating opportunities for additional capital and operational efficiencies,” he notes.

The initiative that was approved Launched by the United States Futures and Commodities Commission (CFTC) on June 6, Bitcoin and Ether futures trading is going through a good moment.

A clear example of this bullish trend occurred last October on the Chicago Mercantile Exchange (CME), where futures and derivatives are traded. There, the BTC and ETH futures market reached all-time highs, even surpassing the Binance cryptocurrency exchange, as CriptoNoticias reported.

He BTC futures trading volume on this exchange increased by 73%which is equivalent to about $44.1 billion, while ETH futures rose 60%, equivalent to $10.2 billion, the highest since last April.

This increase implies that more contracts are being opened, indicating a growing presence of institutional investors in the derivatives space.

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