- Cboe has received authorization for margin BTC and ETH Futures from the CFTC.
- The exchange will continue to provide spot trading alongside its other services.
Cboe Global Markets was granted permission to provide margin Bitcoin and Ether futures contracts to its cryptocurrency customers on Monday, June 5. When it comes to Bitcoin futures contracts, Cboe was an early adopter.
To provide both physically settled and financially settled margined products beginning in the second part of the year, Cboe has just received authorization from the CFTC.
Cboe is the only exchange that provides fully collateralized crypto futures trading at this time. But under the terms of these deals, customers had to front the whole contract value before making any trades. Margin trading allows investors to initiate a position with less money down.
Offers Both Spot and Derivatives Trading
By eliminating the need for intermediary custodian services, Bitcoin and Ether futures will be accessible to more conventional businesses via physical settlement.
John Palmer, president of Cboe Digital, stated:
“That’s where the concept of us also having a spot market has advantages. We didn’t want to have to force participants to custody or touch the physical asset.”
Cboe Digital, according to Palmer, will continue to provide spot trading alongside its other services. Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC are all digital currencies that may be traded on Cboe Digital, a U.S.-based regulated exchange.
It’s the only marketplace that allows trading in both spot and derivatives, and it also serves as a clearinghouse. Cboe has also given hints that it would want to increase the variety of tokens available for trade. An independent futures commission merchant is needed as a go-between for these margined transactions.
This occurs at a time when the SEC has been cracking down heavily on cryptocurrencies. The SEC filed a complaint against Binance, a cryptocurrency exchange that controls over $115 billion in digital assets, on Monday.
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