Chicago Options Exchange’s cryptocurrency division Cboe Digital has announced that it will officially launch margin futures trading for Bitcoin (BTC) and Ethereum (ETH) starting from January 11, following approval of its products by the Commodity Futures Trading Commission (CFTC) in June.
In contrast to conventional cryptocurrency futures trading (such as CME’s Bitcoin futures products), margin futures allow traders to use leverage, holding positions that exceed the value of their collateral.
Cboe Digital stated in the press release that this new product will be supported by market makers and trading firms including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, and Marex.
John Palmer, President of Cboe Digital, stated in the press release that futures have long been a valuable hedging tool in traditional financial markets, and derivative financial products will promote more liquidity and hedging opportunities in the cryptocurrency space, representing the next key step in the continued growth of this market.