Cboe Global Markets is set to introduce new Bitcoin and Ether "Continuous Futures" on December 15th. These contracts will provide long-term, perpetual-style exposure to both digital assets on its futures exchange.
According to an announcement made by the company on Monday, these contracts will have a 10-year term and include a daily cash adjustment mechanism. This adjustment is designed to replicate the economics of perpetual futures, thereby eliminating the necessity for traders to roll over expiring positions.
Futures are defined as standardized contracts that enable traders to buy or sell an asset at a predetermined price on a future date. They are commonly utilized for hedging strategies or for speculative purposes.
Cboe has stated that the structure of these new futures is intended to offer investors the same financial tools they currently rely on in traditional futures markets. These tools include capital efficiency, volatility hedging, tactical trading capabilities, and the ability to establish short positions.
The contracts will be cleared through Cboe Clear US, a measure aimed at reducing counterparty risk. Margin rules will be aligned with Commodity Futures Trading Commission (CFTC) standards, and there is a possibility of cross-margining with existing Cboe Futures Exchange (CFE) crypto futures. Pending regulatory approval, these futures will be available for trading 23 hours a day, five days a week.
Cboe Global Markets operates as a US exchange operator, managing equities and derivatives marketplaces across various regions, including North America and Europe. The company had previously announced its intention to launch its "continuous futures" product for Bitcoin and Ether in September.
The Evolving Crypto Futures Market
While US regulators historically opposed the listing of crypto futures products on exchanges, their stance has seen a shift under President Donald Trump's administration. This change has created opportunities for the introduction of new crypto-derivative offerings.
On April 21st, the CFTC solicited public feedback regarding the potential benefits and risks associated with perpetual derivatives. The commission sought input on how these products operate, their potential uses in trading and clearing, and any implications they might have for market integrity and customer protection.
In March, the Bitnomial crypto exchange announced the debut of the first CFTC-regulated XRP futures in the US. Subsequently, in July, Coinbase revealed plans to launch nano-sized perpetual contracts for Bitcoin and Ether.
The crypto futures market represents a significant financial landscape. On Monday, open interest in crypto perpetuals stood at approximately $767 billion, according to data from CoinMarketCap.
