Cboe Acquiring Erisx to Enter Cryptocurrency Spot and Derivatives Markets
Cboe is acquiring Erisx to enter the crypto spot and derivatives markets. “With Erisx, in a single step, Cboe is able to enter the digital asset spot, data, derivatives, and clearing ecosystem. Now is the right time to fully embrace and help define this emerging asset class,” said Cboe’s chief operating officer.
Cboe Entering Crypto Spot and Derivatives Markets
Cboe Global Markets Inc. (Cboe: CBOE) announced Wednesday that it has agreed to acquire Eris Digital Holdings LLC (Erisx).
Erisx’s futures exchange and clearing house are regulated by the Commodity Futures Trading Commission (CFTC). In addition, its clearing house is registered with the Financial Crimes Enforcement Network (FinCEN) and licensed in many U.S. states and territories.
Noting that “Erisx operates a U.S. based digital asset spot market, a regulated futures exchange, and a regulated clearing house,” the announcement details:
Ownership of Erisx provides Cboe with entry to digital asset spot and derivatives markets, including clearing and settlement.
“With Erisx, in a single step, Cboe is able to enter the digital asset spot, data, derivatives, and clearing ecosystem,” said Chris Isaacson, chief operating officer of Cboe. “Now is the right time to fully embrace and help define this emerging asset class.”
Erisx’s product suite includes multiple cryptocurrencies, stablecoins, physically delivered bitcoin and ether futures, and cash-settled futures. The acquisition is expected to close in the first half of 2022, pending regulatory approvals.
Cboe offered bitcoin futures back in 2017 but pulled the product in March 2019. The company now plans to operate a digital asset business as Cboe Digital with the help of Digital Advisory Committee, which will be formed to advise Cboe on the ongoing development of the Eris spot and derivatives markets. The committee’s members will include DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial, and Webull.
Tom Jessop, president of Fidelity Digital Assets, opined: “The Cboe-Erisx combination represents an attractive opportunity to collaborate with a global exchange operator who can bring increased regulatory proficiency, resilient technology and product expertise to digital asset markets. We look forward to collaborating with Cboe Digital.”
Matthew McDermott, Global Head of Digital Assets at Goldman Sachs, expressed his support, saying:
This is an exciting development for institutional adoption of cryptocurrencies, and we look forward to finding ways to work closely with the newly created group, Cboe Digital.
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