Cboe Global Markets has announced the launch of continuous futures contracts for Bitcoin and Ether, set to begin on November 10 pending regulatory approval.
Cboe Announcement
Cboe Global Markets stated it will launch continuous futures contracts for Bitcoin and Ether on November 10, pending regulatory approval. The products, lasting up to 10 years, are designed to provide U.S. traders with access to long-term contracts without the need for constant rolling typical of standard futures. Daily adjustments will be based on a 'transparent and replicable' funding rate tied to spot market prices.
Importance for U.S. Markets
Perpetual-style futures have long been unavailable to U.S. investors due to regulatory barriers. Cboe's version aims to replicate their functionality in a compliant framework. Catherine Clay, Cboe's global head of derivatives, noted that the products will offer 'confidence in a trusted, transparent and intermediated environment.' This move also comes as the Commodity Futures Trading Commission (CFTC) increases scrutiny of offshore derivatives venues. Cboe seeks to capture demand that has been flowing abroad for years.
Next Steps for Traders and Institutions
The contracts will clear through Cboe Clear U.S., a CFTC-regulated clearinghouse. Analysts expect demand from both hedge funds and retail traders, particularly as institutional adoption accelerates. Spot Bitcoin ETFs have already attracted over $25 billion in inflows within six months of approval, indicating appetite for regulated crypto exposure. For hedge funds and proprietary trading firms, continuous futures eliminate rolling costs and simplify long-term positioning.
The launch of Cboe's continuous futures contracts could significantly reshape the U.S. crypto derivatives market, providing new avenues for traders and investors to engage in this rapidly evolving space.
