Cboe Bails on Bitcoin Futures as Trading Volume Wanes
Cboe Global Markets (CBOE), the largest U.S. options exchange, is putting its Bitcoin futures market on hold for the foreseeable future as trading volumes have cooled since peaking last summer and continue to lag CME Group.
According to a recent notice, the Cboe Futures Exchange, or CFE, will not be adding a Bitcoin (XBT) futures contract for trading in March 2019.
“CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading,” reads the notice. “While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading.”
A quick look at the chart for contract volumes quickly shows just how stagnant growth has been for the market over the past year. This would likely only get worse as both Bakkt and ErisX prepare to launch their physical-settlement products this year.
It is unclear at this time how the decision to remove its Bitcoin futures market will impact its current progress towards creating an Ethereum (ETH) futures market. As previously reported, the Cboe was awaiting further clarification from the CFTC before launching the Ethereum product but had already started telling market makers to expect its release.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.