Cboe Set to Launch Continuous Bitcoin and Ethereum Futures for US Customers

Derivatives exchange Cboe Global Markets has announced plans to introduce continuous futures contracts for both Bitcoin and Ethereum, targeting U.S. customers. Pending regulatory approval, these innovative products are slated for launch on November 10th. This move aims to bring a popular trading instrument, already prevalent in offshore markets, into a regulated U.S. framework, offering investors a new way to gain long-term exposure to the leading cryptocurrencies.

Key Takeaways

• Cboe plans to launch continuous Bitcoin and Ethereum futures for U.S. customers.

• The contracts will feature a 10-year expiration, offering long-term market access.

• These products are cash-settled and aligned with real-time spot market prices.

• The launch aims to bring offshore perpetual-style futures utility to a U.S.-regulated environment.

Bringing Perpetual-Style Futures to the US

Cboe's new continuous futures contracts are designed to function similarly to perpetual futures, which are popular in decentralized finance (DeFi) and offshore exchanges due to their lack of a fixed expiration date. Unlike traditional futures that require periodic rolling over, these new contracts will have a 10-year expiration. This structure is intended to provide investors with continuous, long-term market access and simplify position management.

Catherine Clay, Global Head of Derivatives at Cboe, stated that the exchange is bringing the utility of perpetual-style futures, which have seen strong adoption in offshore markets, to its U.S.-regulated futures exchange. This initiative allows U.S. traders to access these products with confidence within a trusted and transparent environment.

Product Details and Regulatory Landscape

The continuous futures contracts will be cash-settled and will track real-time spot market prices through daily cash adjustments based on a transparent funding rate methodology. Cboe Clear US, a derivatives clearing organization regulated by the Commodity Futures Trading Commission (CFTC), will clear these contracts. This move aligns with a broader trend of increased regulatory coordination between the SEC and CFTC, aimed at harmonizing digital asset oversight and fostering innovation within the U.S. financial markets.

While Cboe is not the first to offer crypto perpetuals to U.S. traders, with Bitnomial and Coinbase having already launched similar products, Cboe's entry signifies a significant step for a major derivatives exchange. The exchange plans to offer educational courses to prepare market participants for these new contracts.

Sources

• Cboe to Debut Continuous Bitcoin, Ethereum Futures for US Customers, Decrypt.

• Cboe Plans Continuous Futures Product for Bitcoin, Ether, Cointelegraph.

• CBOE plans November launch for Bitcoin and Ethereum continuous futures contracts, CryptoSlate.