Cboe to Close Spot Crypto Trading Platform, Shift Futures to Cboe Futures Exchange by 2025
Cboe to Close Spot Crypto Trading Platform, Shift Focus to Futures Trading
In a strategic move, Cboe Global Markets has announced plans to close its spot crypto trading platform by the third quarter of this year. The company will be shifting its focus to cash-settled crypto futures, which will be moved to the Cboe Futures Exchange by 2025.
This decision comes as Cboe aims to streamline its digital asset operations amidst regulatory uncertainty in the digital asset market. The company stated that these adjustments are part of a strategic evaluation to ensure long-term success in the evolving market.
John Palmer, currently the president at Cboe Digital, will now head the company’s US derivatives market. He will report to Cathy Clay, the executive vice president and global derivatives head.
Cboe Global Markets CEO, Fred Tomczyk, emphasized the company’s renewed focus on digital asset derivatives, leveraging their expertise in derivatives and clearing. The move is expected to provide comprehensive support from the Cboe Global Derivatives business, including sales, product development, market structure, and investor education.
Despite the closure of the spot market, Cboe forecasts minimal impact on its 2024 revenue. The company expects cost savings of $2 million to $4 million this year, with potential annual savings reaching $11 million to $15 million in the future.
This strategic shift comes less than a year after Cboe Digital made a significant impact with its margin futures launch for Bitcoin and Ether. The company aimed to be a leading player in regulated US crypto exchanges, offering both spot and leveraged derivatives on a single platform.
With these changes, Cboe is positioning itself for continued success in the digital asset market, focusing on futures trading and leveraging its core strengths in derivatives and technology innovation.
