Cboe Digital Update from John Palmer and Dave Howson

Dear Cboe Digital Customers,

We are writing to share with you that Cboe has made the strategic decision to refocus our digital asset business and will transition the trading and clearing of our cash-settled bitcoin and ether futures, currently offered by Cboe Digital, into our existing Global Derivatives and Clearing businesses. As such, we plan to wind down operations of the Cboe Digital Spot Market, the company’s spot digital asset trading platform, in the third quarter of 2024, subject to regulatory review. Additional details are available in the press release that was just distributed.

We continue to believe in the transformative potential of digital assets to move into the mainstream and drive innovation, efficiency and transparency in the capital markets. Due to the regulatory uncertainty and headwinds in the U.S., among other factors, we determined the most effective way to support institutional adoption of digital assets is to focus our efforts on where we already excel – expertise in derivatives, technology and product innovation.

We plan to migrate our cash-settled bitcoin and ether futures contracts to Cboe Futures Exchange (CFE) in the first half of 2025, pending regulatory review and certain corporate approvals. This move will consolidate all Cboe U.S. futures products, including digital asset futures, onto one exchange powered by world-class technology. Cboe will maintain ownership and operation of Cboe Clear Digital, which will continue to clear these products.

By migrating our digital asset futures to our long-standing futures exchange, our goal is to create efficiencies for you, our clients, while harnessing the power of our global derivatives franchise to support the digital asset derivatives market.

We will share additional details regarding the wind down process for the Cboe Digital Spot Market and the timeline for migration of the derivatives futures products to CFE in due course. For our Spot Market customers in particular, you will be receiving an additional communication from Cboe on April 26 regarding the future of your account. For other vendors and strategic partners, there is no action needed at this time—to the degree that you are affected by these changes, we will separately communicate with you.

We greatly appreciate your partnership as we continue to collaborate on growing the exchange-traded crypto derivatives market. If you have any questions, please do not hesitate to reach out to your account manager or either of us.

Sincerely,

John Palmer                                                     Dave Howson

President, Cboe Digital                                  Global President, Cboe Global Markets