Cboe Acquires Erisx to Enter Cryptocurrency Spot and Derivatives Markets – Exchanges

Cboe Acquires Erisx to Enter Crypto Spot and Derivatives Market. "With Erisx, Cboe is able to enter the digital asset spot, data, derivatives and clearing ecosystem in a single step. Now is the right time to fully embrace and define this emerging asset class," said Cboe's Chief Operating Officer.

Cboe enters 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 futures exchange and clearinghouse are regulated by the Commodity Futures Trading Commission (CFTC). Additionally, its clearinghouse is registered with the Financial Crimes Enforcement Network (FinCEN) and licensed in many US states and territories.

The announcement notes that “Erisx operates a US-based digital asset spot market, a regulated futures exchange and a regulated clearinghouse”:

Ownership of Erisx gives Cboe access to the spot and derivatives markets for digital assets, including clearing and settlement.

“With Erisx, Cboe is able to enter the digital asset spot, data, derivatives and clearing ecosystem in a single step,” said Chris Isaacson, Chief Operating Officer of Cboe. “Now is the time to fully embrace and 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, subject to regulatory approvals.

Cboe offered Bitcoin futures back in 2017, but withdrew the product in March 2019. The company now plans to operate a digital asset business as Cboe Digital with the help of the Digital Advisory Committee, which will be formed to help Cboe further develop the Eris. to advise spot and derivatives markets. The committee members include DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial and Webull.

Tom Jessop, President of Fidelity Digital Assets, said: "The Cboe-Erisx combination represents an attractive opportunity to partner with a global exchange operator that can bring enhanced regulatory knowledge, resilient technology and product expertise to the digital asset markets. We look forward to working 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 formed Cboe Digital group.

What do you think about Cboe acquiring Erisx to enter the crypto spot and derivatives markets? Let us know in the comments section below.

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