US-based options exchange Cboe Digital has announced plans to launch margin futures trading and clearing for Bitcoin (BTC) and Ethereum (ETH) starting January 11, 2024.

This development positions Cboe Digital as the first US-regulated cryptocurrency native exchange and clearinghouse to facilitate spot and leveraged derivatives trading on a single platform. 

Cboe To Introduce Margined Contracts For BTC And ETH

Per the announcement, by adopting an “intermediary-inclusive” model and ensuring the separation of duties to prevent conflicts of interest, Cboe aims to establish a “robust and reliable” trading environment.

Initially, Cboe Digital will offer financially settled margined contracts for Bitcoin and Ether. It plans to expand its product suite to include physically delivered products, pending regulatory approvals. 

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ETH’s uptrend on the daily chart. Source: ETHUSDT on TradingView.com

The margin model implemented by Cboe Digital allows customers to trade futures without the requirement of posting the full collateral upfront. This approach allegedly enhances “capital efficiency” compared to trading futures on a non-margined basis.

Notably, the launch of margin futures by Cboe Digital has garnered support from prominent firms across the cryptocurrency and traditional financial sectors, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush. John Palmer, President of Cboe Digital further stated:

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. 

Ethereum Surges Past Bitcoin

Bitcoin and Ethereum, being two of the most prominent and widely traded cryptocurrencies, are likely to be directly impacted by Cboe Digital’s initiative. The availability of margined futures trading on these assets will offer investors additional tools for managing risk and potentially attract more institutional participation in the market.

It is worth noting that Cboe Digital’s planned launch of margin Bitcoin and Ether futures will complement its existing offerings, including spot trading of Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC on its crypto market platform. 

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BTC’s sideways price action on the daily chart. Source: BTCUSDT on TradingView.com

Currently, the surprising development that BlackRock, the world’s largest asset manager, has registered an Ethereum Trust in Delaware has caused ETH to outperform BTC in both the past 24 hours and the seven-day timeframe. 

Trading at $2,097, ETH has gained 2% in the past 24 hours and a remarkable 9.5% over the past seven days. Conversely, BTC is currently trading at $36,700, reflecting a slight decrease of 1% over the past 24 hours but a positive growth of 4.6% over the past seven days.

Featured image from Shutterstock, chart from TradingView.com

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