The Cboe, the largest US options exchange, is gearing up to launch futures trading for Bitcoin (BTC) and Ethereum (ETH) with margin capabilities. According to the Wall Street Journal, Cboe is set to introduce the option to trade BTC and ETH futures on margin starting in January, a move expected to boost overall activity in the cryptocurrency market.
In contrast to fully collateralized futures contracts that require traders to put up the entire amount upfront, margined contracts enable users to utilize only a percentage of the position before executing the trade. This introduces both the potential for significant gains and losses in margin trading. Consequently, Cboe aims to bring this aspect of digital asset trading to its customers in the coming months.
The surge in interest in digital assets throughout the year, following a lackluster 2022, has been notable. The anticipation of the approval of a Spot Bitcoin ETF has attracted numerous companies to enter the market. This trend continues with Cboe's upcoming introduction of margined Bitcoin and Ethereum futures at the beginning of the new year.
Cboe, also known as the Chicago Board Options Exchange, stands out as the largest exchange of its kind in the United States. Based in Chicago, it serves as a global hub for derivatives and exchange services, offering trading and investment solutions worldwide. As of 2024, Cboe will expand its offerings to include Bitcoin and Ethereum margined futures trading, adding a new dimension to its extensive list of services.