CBOE plans to return to the crypto market and will acquire ErisX, a compliant exchange

Summary:

  • Cboe has agreed to acquire ErisX, an encrypted spot and derivatives exchange.
  • The transaction is expected to be completed in the first half of 2022, but requires regulatory approval.

Cboe Global Markets (Cboe Global Markets) announced on Wednesday that it has agreed to acquire the crypto spot and derivatives exchange ErisX.

This news marks the return of Cboe in the field of encryption. In December 2017, the Chicago Board Options Exchange (Cboe) was the first U.S. compliant exchange to launch Bitcoin futures , but in June 2019, it closed Bitcoin futures trading amid a decline in trading volume. At the time, Cboe stated that it was evaluating how it plans to continue its encryption business.

The day before the announcement of the ErisX acquisition, the first Bitcoin futures ETF approved by the SEC began trading in the United States. ProShares Bitcoin Strategy ETF (BITO) set a historical trading volume of nearly $1 billion on the first trading day of NYSE Arca Exchange.

Chris Isaacson, Executive Vice President and Chief Operating Officer of Cboe, said, “ Now is the right time to fully embrace and help define this emerging asset class. With ErisX, Cboe can access digital asset spot, data, derivatives and liquidation in just one step. ecosystem.”

It is reported that ErisX was established in 2018 and operates a cryptocurrency spot market, a futures exchange and a clearing house in the United States. Its futures exchanges and clearing houses are regulated by the US Commodity Futures Trading Commission (CFTC), and the clearing house is registered with the Financial Crimes Enforcement Network of the United States (FinCEN) and is licensed in many states and regions in the United States.

Cboe plans to operate its encryption business under the name of Cboe Digital. The company will also form a digital advisory committee with well-known companies to plan the sustainable development of ErisX. These companies include DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos and Robinhood. Some of these companies also intend to acquire minority stakes in Cboe Digital and serve as partners for business growth.

The terms of the acquisition have not been disclosed, but Cboe stated that the purchase price is “not important from a financial point of view.” The company plans to fund the transaction with cash on hand and increased debt.

The acquisition is expected to be completed in the first half of 2022, but requires regulatory approval.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/cboe-plans-to-return-to-the-crypto-market-and-will-acquire-erisx-a-compliant-exchange/
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