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CBOE to re-enter the Bitcoin derivative game by acquiring ErisX

Traditional financial institutions are entering the cryptocurrency market in droves as the growth continues.

Cboe Global Markets announced yesterday that it is set to acquire ErisX, a crypto spot and derivatives exchange. This latest development marks the return of the CBOE exchange after it stopped offering Bitcoin derivative services a few years ago.

In a press release yesterday, CBOE announced that “it has entered into a definitive agreement to acquire Eris Digital Holdings, LLC (ErisX). ErisX operates a U.S.-based digital asset spot market, a regulated futures exchange and a regulated clearinghouse.”

The company stated that by acquiring ErisX, it has the opportunity to enter the digital asset spot and derivatives marketplaces via a digital-first platform. CBOE praised ErisX as being a platform that focuses on a robust transparency and regulatory compliance.

CBOE set the record as the first United States regulated exchange to launch Bitcoin futures. The firm launched the Bitcoin futures trading services during the Bull Run of 2017. However, in June 2019, CBOE shut down the product as it complained of low trading volumes.

At the time, CBOE also explained that it was taking time to assess how it would approach the cryptocurrency business. The company is now ready to enter the Bitcoin derivative trading market again. The news comes just a day after the ProShares Bitcoin futures ETF started trading on the New York Stock Exchange (NYSE) Arca.

The Bitcoin futures ETF has already recorded more than $1 billion in its first two trading days, a record on the NYSE Arca platform. CBOE is planning to start offering cryptocurrency services as CBOE Digital. The company added that it would form a Digital Advisory Committee comprising of high-profile firms as it starts planning the development of the ErisX platform.

Some of the companies that would be on the committee include NYDIG, Paxos, Galaxy Digital, Interactive Brokers, Robinhood, DRW and Fidelity Digital Assets. All these companies are currently active in the cryptocurrency space and offer a wide range of services to their clients.

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