Cboe Introduces Innovative Bitcoin and Ether Futures in the US
Cboe Global Markets is set to unveil new Bitcoin and Ether “Continuous Futures” on December 15, which will provide a long-term, perpetual-style trading option for both cryptocurrencies.
As per a recent announcement from the exchange, these contracts will operate over a 10-year term and will include daily cash adjustments that reflect the mechanics of perpetual futures, eliminating the requirement to roll over expiring contracts.
Futures contracts are standardized agreements enabling traders to buy or sell an asset at a predetermined price on a specified future date, often utilized for hedging or speculative purposes. Cboe aims for this structure to deliver tools similar to those used in conventional futures markets, offering capital efficiency, volatility management, tactical trading, and short-selling opportunities.
These contracts will be cleared through Cboe Clear US, minimizing counterparty risk, with margin requirements adhering to Commodity Futures Trading Commission (CFTC) guidelines and allowing possible cross-margining with existing Cboe Futures Exchange (CFE) crypto futures. Subject to regulatory approval, trading will occur 23 hours a day, five days a week.
Cboe Global Markets serves as an exchange operator in the US, managing equity and derivatives marketplaces across North America and Europe. The organization first mentioned its plan for a “continuous futures” product for Bitcoin and Ether back in September.
The Crypto Futures Market
The US regulatory environment has historically hindered exchanges from launching crypto futures, although this position has evolved during President Donald Trump’s administration, paving the way for new crypto derivative products.
On April 21, the CFTC sought public feedback regarding the potential advantages and risks associated with perpetual derivatives, interested in insights on functionality, usage in trading and clearing, as well as considerations for market integrity and consumer protection.
Earlier this year, Bitnomial crypto exchange debuted the first CFTC-regulated XRP futures in the US, and in July, Coinbase announced plans to introduce nano-sized Bitcoin and Ether perpetual contracts.
The crypto futures market is substantial, with an open interest in perpetuals nearing $767 billion, according to CoinMarketCap data.
