CBOE partners with Winklevosses to use Gemini data to trade bitcoin derivatives pending regulatory approval; SEC denied Winklevoss' Bitcoin ETF listing recently
(Adam Lashinsky is on vacation this week. Matthew De Silva / ETHNews : CBOE and Gemini Strike Exclusive Global Licensing Agreement For Bitcoin Data John Detrixhe / Quartz : The Winklevoss twins are making headway in their quest to get Wall Street to go big on bitcoin GlobalCapital : CBOE joins Bitcoin derivatives race Graham Rapier / Business Insider : One of the biggest exchange groups in the world has partnered with the Winklevoss twins' bitcoin startup Evelyn Cheng / CNBC : CBOE plans to launch bitcoin futures, announces agreement with Winklevoss brothers' digital currency exchange Pete Rizzo / CoinDesk : Options Exchange CBOE to Launch Cryptocurrency Derivatives in 2017
Context & Ripple Effects
The Winklevoss twins built Gemini as a regulator-friendly venue from the start, winning NY regulator approval back in 2015 before trading began. That compliance-first positioning is now paying off in a different way: with the SEC having just denied their Bitcoin ETF listing, they are monetizing the exchange itself rather than the fund wrapper.
CBOE's exclusive global license for Gemini's bitcoin market data puts one of the largest US exchange groups directly into the bitcoin derivatives race — using the Winklevosses' regulated price feed as its foundation, pending regulatory sign-off.
First-order effects
- CBOE gets an exclusive feed of Gemini's bitcoin pricing to build derivatives products on, while the Winklevosses gain institutional distribution through a major exchange group immediately after their ETF route was blocked.
Second-order effects
- Rival exchange groups now face pressure to secure their own bitcoin data sources and file for comparable derivative products, turning regulated market data from crypto-native venues into a contested licensing market.
Third-order effects
- If the pattern holds, bitcoin's entry into mainstream finance runs through incumbent exchanges licensing crypto-native data and infrastructure rather than through ETF approvals — with regulators gating the products but not the partnerships.
The trend: Bitcoin is being absorbed into Wall Street through incumbent exchanges' derivatives desks, with regulatory approval — not crypto-native ambition — setting the pace.