Exclusive: Brokers Start Shutting Down Crypto CFDs Due to One-Sided Market

[kreslik.news]

Sources with knowledge of the matter have shared with Finance Magnates that a number of brokers are materially reducing their exposure to cryptocurrencies. After the initial excitement about Bitcoin futures passed, brokers realize that hedging their exposure via the CBOE and the CME Group is not a feasible option for now.

Collateral requirements of the Chicago-based exchanges total to 44% for the smaller CBOE contract and 35% for the CME Group’s contract. Brokers willing to hedge an exposure that is worth 5 BTC would need to post between $33,750 and $41,800 with the exchanges. They would hence need to require the ... (read more)