Turns out there was a bit of a bidding war around Cboe Global Markets acquisition of cryptocurrency spot and derivatives exchange ErisX last month.
Cboe had to fend off purchase attempts from both Coinbase and Gemini, according to a source with knowledge of the matter. The competition behind the acquisition led to Cboe offering $500 million in cash and $500 million in futures payouts, the source said.
The lofty $1-billion figure stands in stark contrast to Cboe saying in a press release that “the purchase price is not material from a financial perspective.”
Coinbase and Gemini were both especially interested in the fact that ErisX already has approval from the Nationals Future Association (NFA), which regulates the market. Coinbase has applied for the same certification. While the company waits, ErisX would have offered “a way to offer options now,” the source said.
A spokesperson for Coinbase declined to comment, as did a spokesperson for ErisX. Representatives from Cboe and Gemini did not return requests for comment.
ErisX is set to rebrand to Cmoe Digital once the deal closes, which is expected to occur in the first half of next year, pending regulatory approval.
Cboe initially offered Bitcoin futures in 2017, but took a step back from the space in March 2019, citing low trading volumes as the price of Bitcoin plummeted.
Cboe has also formed what the company is calling a “digital advisory committee. Some of those parties are set to acquire minority stakes in Cboe Digital. Among them: DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers and Robinhood.
Turns out there was a bit of a bidding war around Cboe Global Markets acquisition of cryptocurrency spot and derivatives exchange ErisX last month.
Cboe had to fend off purchase attempts from both Coinbase and Gemini, according to a source with knowledge of the matter. The competition behind the acquisition led to Cboe offering $500 million in cash and $500 million in futures payouts, the source said.
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