Cboe approved to trade Bitcoin and Ether futures by CFTC.

Cboe Global Markets, a financial exchange company, has been granted approval to allow users to trade cryptocurrency futures contracts. Customers of the Cboe Digital platform will soon be able to trade Ether (ETH) and Bitcoin (BTC) futures contracts this year, following the approval of an amended order of registration by the Commodity Futures Trading Commission (CFTC).

The CFTC has given Cboe Digital approval to financially and physically settle margin contracts in the second half of this year. Although Cboe has allowed crypto futures contracts trading for over five years, the futures trading approval is still pivotal for the company. Previously, users could not conduct margined trades while trading fully collateralized crypto futures that require the full value of a contract before the trade.

The new approval will allow Cboe to support traditional firms physically settling their assets without requiring custody services from intermediaries. Cboe is the only exchange registered in the US that offers spot and derivatives trading, and it will settle the assets and support margin trading. Supported assets include Bitcoin, Ether, Bitcoin Cash, USDC, and Litecoin.

Cboe recently submitted an application to the Securities Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). This is the company’s third attempt at getting the SEC to approve the ETF. The SEC has rejected all applications for spot BTC ETFs, including submissions from Fidelity, the New York Digital Investment Group (NYDIG), and Grayscale. Hopefuls believe that the commission is being deliberately difficult about its refusal to approve these ETFs.