Cboe Digital intends to become the first U.S.-regulated crypto native exchange that will enable both spot and leveraged derivatives trading.

Cboe Digital, an exchange backed by the world’s largest options exchange CBOE Global markets and registered with the U.S. Commodities and Futures Trading Commission (CFTC), plans to introduce margined Bitcoin and Ether futures in January.

In a press release on Monday, Cboe Digital said it intends to become the first U.S.-regulated crypto native exchange and clearinghouse to enable both spot and leveraged derivatives trading on a single platform.

The trading and clearing in Bitcoin and Ether margin futures are set to commence on Jan. 11, 2024, with 11 leading firms from both the digital asset industry and traditional finance committed to supporting the launch from day one. This list includes firms like Jump Trading, Wedbush and Cumberland DRW.

Margin trading is a feature which allows a user to borrow money from a broker to purchase an underlying asset. It is a particularly lucrative way of trading for institutional players that are able to front a larger amount of capital for a greater profit incentive and manage risks. 

At a later date, the exchange plans to include physically delivered products, subject to regulatory approval.

CBOE announces leveraged #Bitcoin futures trading is possible from January.

The odds of a spot Bitcoin ETF are increasing.

The bull market is here.

— Michaël van de Poppe (@CryptoMichNL) November 13, 2023

“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,” said John Palmer, President of Cboe Digital.

The launch of margin futures on Cboe will add to the exchange’s existing offerings of spot trading for Bitcoin, Bitcoin Cash, Ether, Litecoin and USDC.