Cboe Global Markets has announced plans to close its spot crypto trading platform by Q3 and shift its cash-settled crypto futures to the Cboe Futures Exchange by 2025. The company will also streamline its digital asset operations by integrating its digital asset derivatives into its broader Global Derivatives and Clearing business. These adjustments are part of a strategic evaluation in response to regulatory uncertainty in the digital asset market, according to Cboe. John Palmer, currently president at Cboe Digital, will now head the company’s US derivatives market and report to Cathy Clay, executive vice president, and global derivatives head.
Moving digital asset derivatives to the Cboe Futures Exchange will allow for comprehensive support from the Cboe Global Derivatives business, including global derivatives sales, product development, market structure, and investor education. Cboe Global Markets CEO, Fred Tomczyk, emphasized that refocusing the digital asset business will enable the company to leverage its core strengths in derivatives, technology excellence, and product innovation to maximize opportunities. The company already has a presence in the US, Japan, Europe, Canada, and Australia and has hinted at potential expansion into new markets.
In addition to closing its spot crypto trading platform, Cboe will continue to operate its digital asset clearing arm, Cboe Clear Digital, which will be integrated with its European clearinghouse to continue clearing Bitcoin and Ether futures. The decision to wind down the spot market is not expected to have a significant impact on Cboe’s 2024 revenue but is predicted to generate cost savings of $2-4 million this year and up to $11-15 million in the future. Cboe’s move to close the spot market comes shortly after the company made a notable entrance into the crypto market with its margin futures launch for Bitcoin and Ether.
Through its strategic realignment of its digital asset business, Cboe Global Markets aims to capitalize on its expertise in derivatives and clearing while adapting to the evolving regulatory landscape in the crypto industry. By consolidating its digital asset derivatives under the broader Global Derivatives and Clearing business, Cboe is positioning itself for continued success and growth in the digital asset market. The company’s decision to focus on leveraging its core strengths and maximizing opportunities in the crypto sector reflects its commitment to innovation and strategic planning for the future.
