Cboe to End Crypto Exchange in Plans to Consolidate Futures

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 Cboe Digital Exchange to Cboe Futures Exchange in the first half of 2025. According to the press release, John Palmer, the President of Cboe Digital, will head US Derivatives Market Development.

Cboe aims to consolidate all its US futures products onto one exchange to enhance efficiency for clients globally. By leveraging its global derivatives franchise, the options exchange aims to support exchange-traded digital asset derivatives markets.

Fred Tomczyk, the Chief Executive Officer of Cboe Global Markets, stated: “Refocusing our digital asset business enables us to refine our strategy, leveraging our core strengths in derivatives, technology excellence and product innovation to help maximize opportunities for our business and deliver efficiencies for Cboe and our clients.”

“We believe these changes enable greater optimization and strategic alignment for our business across geographies and asset classes, further supporting our long-term growth strategy.”

Cboe Aligns Clearing Business

Notably, Cboe will maintain ownership and operation of Cboe Clear Digital, its clearing arm, and align it with Cboe Clear Europe under unified leadership. This exchange mentioned that this alignment will better serve clients globally.

According to Cboe, the closure of the crypto exchange will not have a significant impact on its net revenue in 2024. The company anticipates to save on its expenses from the closure. Further details about these changes are expected during the first-quarter 2024 earnings call on May 3, 2024.

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Last year, Cboe Digital launched margin futures for Bitcoin and ether. Backed by a consortium of 11 firms, including notable names like B2C2 and Cumberland DRW, Cboe Digital noted that it was enhancing crypto trading by combining spot and leveraged derivatives trading on a unified platform.

Cboe Digital became one of the first US-regulated crypto exchanges and clearinghouses after integrating spot and leveraged derivatives trading. The addition of physically delivered products further diversified its offerings, catering to the evolving needs of crypto traders.

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