Cboe Global Markets plans to close its cryptocurrency exchange in the third quarter of 2024. Cash-settled Bitcoin and Ether futures contracts will move from the Cboe Digital Exchange to the Cboe Futures Exchange in the first half of 2025. According to the press release, John Ballmer will lead, Head of Cboe Digital, US derivatives market development.
Standardization of cryptocurrency futures
Cboe aims to consolidate its US futures products into a single exchange to enhance efficiency for clients globally. Leveraging its global derivatives franchise, the options exchange plans to support exchange-traded digital asset derivatives markets.
“Refocusing our digital assets business enables us to refine our strategy, and leverage our core strengths in derivatives, technology excellence, and product innovation to help maximize opportunities for our business and deliver efficiencies,” said Fred Tomczyk, CEO of Cboe Global Markets. “
“We believe these changes enable greater optimization and strategic alignment of our business across geographies and asset classes, further supporting our long-term growth strategy.”
News Update: Cboe Global Markets is reorganizing its digital assets business while leveraging strength and expertise in derivatives and clearing. Read the press release: https://t.co/8oyCqjciYZ pic.twitter.com/9N0O8LYchu
– Cboe (@CBOE) April 25, 2024
Cboe aligns the clearing business
Notably, Cboe will retain ownership and operation of Cboe Clear Digital, its clearing arm, and align it with Cboe Clear Europe under unified leadership. The stock exchange stated that this compatibility will better serve customers globally.
According to Cboe, the closure of the cryptocurrency exchange will not have a significant impact on its net revenue in 2024. The company expects to save money in expenses from the closure. More details on these changes are expected during our Q1 2024 earnings call on May 3, 2024.
Last year, Cboe Digital launched Bitcoin and Ether futures. Backed by a consortium of 11 companies, including notable names such as B2C2 and Cumberland DRW, Cboe Digital notes that it is enhancing cryptocurrency trading by combining spot and leveraged derivatives trading on a unified platform.
Cboe Digital has become one of the first US-regulated cryptocurrency exchanges and clearinghouses after integrating spot and leveraged derivatives trading. The addition of physically delivered products has further diversified its offering, meeting the evolving needs of cryptocurrency traders.
This article was written by Jared Kirroy at www.financemagnates.com.
