Cboe to Launch Bitcoin and Ethereum Perpetual-Style Futures
Cboe Global Markets plans to introduce new Bitcoin and Ethereum futures called Continuous Futures. These products will have a 10-year expiration. The launch is scheduled for December 15, pending regulatory approval.
Details of the New Continuous Futures
- The Bitcoin contract is named Cboe Bitcoin Continuous Futures (PBT).
- The Ethereum contract is called Cboe Ether Continuous Futures (PET).
- They offer extended exposure with daily cash adjustments.
- Contracts expire after 10 years but act like perpetual futures.
- These futures trade 23 hours a day, five days a week (Sunday to Friday).
- They are cash-settled and cleared through Cboe Clear US to reduce risk.
- Prices will closely follow the spot market using the Cboe Kaiko Real-Time Rate.
Benefits for Traders and Investors
Rob Hocking, Cboe’s Global Head of Derivatives, said the exchange aims to offer regulated access to perpetual-style futures. These products avoid the need to roll contracts frequently. They also help with capital efficiency and allow short selling. Traders can manage risk and take tactical positions during volatile markets.
Margin rules will follow Commodity Futures Trading Commission (CFTC) standards. Traders may get cross-margining benefits with other Cboe futures like financially settled Bitcoin (FBT) and Ether (FET) contracts.
Growing Market for Crypto Futures
Other exchanges also plan to expand crypto futures. The Singapore Exchange will start Bitcoin and Ethereum perpetual futures on November 24. The Chicago Mercantile Exchange (CME) announced 24/7 trading for crypto futures last month.
At the time of this announcement, Bitcoin and Ethereum prices dropped nearly 5% in 24 hours.
