Cboe Digital today announced plans for margin Bitcoin and Ethereum futures. This move will enable the platform to become the first to offer both spot and leveraged derivatives trading in one place. Margined futures contracts require the buyer and seller to deposit an initial margin and maintain a minimum margin balance as long as the contract remains open. Futures contracts themselves are a type of derivative that allow investors to bet on the future price movements of an asset. Cboe Digital is the digital asset arm of the Chicago Board Options Exchange (CBOE). The margin Bitcoin and Ethereum futures will launch on January 11, while physically delivered products will come at a later date, subject to regulatory approvals. Futures in the world of derivatives trading are agreements that obligate a trader to buy or sell an asset at a specific time, quantity and price. This product will allow traders to use leverage—or borrowed funds to make bets with the hope of getting bigger returns. A number of trading firms such as B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos will support the launch by providing liquidity. Although the futures market is big, several Ethereum futures exchange-traded funds (ETFs) started trading in the United States for the first time last month. This news is good for traders as it will offer them the ability to leverage their investment in Bitcoin and Ethereum futures, with the hope of getting bigger returns. #CboeDigital #CryptoFutures #Bitcoin #Ethereum #ETFs
You can read more about this topic here: Decrypt: Margined Bitcoin and Ethereum Futures Launching on Cboe in January