Cboe plans to launch Bitcoin and Ether 'Continuous futures' on November 10, pending regulatory clearance, offering a regulated alternative to perpetual contracts.

Executive Summary

Cboe Global Markets plans to launch Bitcoin (BTC) and Ether (ETH) 'Continuous futures' on November 10, 2025, pending regulatory approval. These futures contracts, structured as long-dated, cash-settled products with a 10-year expiry, aim to replicate the functionality of perpetual futures contracts commonly found on offshore exchanges but within a U.S.-regulated framework.

The Event in Detail

Cboe's new product suite, to be traded on the Cboe Futures Exchange (CFE), is designed to provide U.S. traders with simplified, long-term exposure to digital assets. Unlike traditional futures contracts that require periodic rolling, these 'Continuous futures' are structured as single contracts expiring in 10 years. The contracts will be cash-settled and aligned to real-time spot market prices using a transparent funding rate methodology. Cboe Clear U.S., a CFTC-regulated derivatives clearing organization, will clear the new futures.

Market Implications

The introduction of these futures contracts may attract both institutional and retail traders seeking access to crypto derivatives within a regulated environment. Catherine Clay, Global Head of Derivatives at Cboe, noted the dominance of perpetual-style futures on offshore exchanges and the lack of a regulated U.S. counterpart. By offering these contracts, Cboe aims to bring the same utility to the U.S. market, fostering confidence through a transparent and intermediated framework.

The design of the 'Continuous futures' eliminates the need to roll positions, potentially reducing costs and simplifying position management for traders. The daily cash adjustments, aligned with spot market prices, aim to ensure that the futures prices closely reflect the underlying assets' real-time valuations. The funding rate mechanism is designed to maintain price convergence between the futures contract and the spot market.

Expert Commentary

\