Cboe to Launch Bitcoin (BTC), Ether (ETH) Perpetual-Style Crypto Futures on Dec. 15

Cboe Global Markets is preparing to launch Bitcoin and Ether continuous futures on December 15, marking a significant milestone as the first U.S. exchange to offer crypto derivatives that mimic perpetual futures. These new contracts, named Bitcoin Continuous Futures (PBT) and Ether Continuous Futures (PET), aim to provide a streamlined way for traders to gain long-term exposure to digital assets without the complications associated with rolling over expiring futures.

Cboe introduces continuous futures for Bitcoin and Ether on December 15

With Bitcoin priced at approximately $92,538.91 and Ether at around $3,030.35, Cboe’s forthcoming products are set to debut on its Futures Exchange. Each contract will come with a 10-year expiration upon listing and will be cash-settled. This approach allows for daily funding adjustments to keep the futures in sync with spot market prices.

Long-term exposure without the hassle of rollovers for traders

By eliminating the need for traders to roll over their contracts, Cboe’s continuous futures offer a more straightforward option for those looking to maintain long-term positions in cryptocurrencies. This aligns with a growing trend in the crypto market, where perpetual futures have gained popularity due to their ability to let traders hold leveraged positions indefinitely.

Regulatory compliance ensures safer trading for U.S. investors

Cboe’s new offerings are designed to comply with U.S. regulations, distinguishing them from many offshore products. The clearing process will be managed by Cboe Clear U.S., a clearinghouse regulated by the Commodity Futures Trading Commission (CFTC). According to Rob Hocking, Cboe’s global head of derivatives, this structure is intended to facilitate efficient portfolio management while providing a controlled method for investors to gain leveraged exposure to digital assets.

New futures could attract institutional investors and sophisticated traders

The introduction of these continuous futures is likely to appeal to institutional investors, hedge funds, and experienced retail traders who have been hesitant to use offshore platforms due to regulatory uncertainties and counterparty risks. The contracts will also support shorting and margin trading, potentially allowing for cross-margining with other Cboe crypto futures, such as the Financially Settled Bitcoin (FBT) and Ether (FET) products. Trading will operate nearly 24/7, from Sunday evening to Friday evening, with a brief daily pause.