What to Know:
- Cboe plans to launch Continuous futures for bitcoin and ether.
- Pending regulatory approval, the products would launch on November 10.
- These futures mimic offshore perpetual contracts but are structured as long-dated, cash-settled products with a 10-year expiry.
Cboe, the derivatives exchange, is set to unveil its “Continuous futures” for Bitcoin (BTC) and Ethereum (ETH) on November 10, subject to regulatory clearance. These contracts are designed to emulate popular perpetual futures from offshore markets, tailored to meet U.S. regulations.
Unlike typical futures that expire monthly or quarterly, Cboe’s contracts will extend for up to 10 years, minimizing the need for traders to frequently roll their positions, thus saving time and costs. Traders can maintain long-term exposure to Bitcoin with a single contract, which will settle in cash instead of assets like Bitcoin or Ethereum.
“Perpetual-style futures have seen a high adoption rate in offshore markets,” stated Catherine Clay, Cboe’s head of derivatives. “We anticipate that these Continuous futures will attract institutional market participants as well as retail traders looking to engage with crypto derivatives.”
Cboe’s futures will be cleared through Cboe Clear U.S., overseen by the Commodity Futures Trading Commission (CFTC).
