Cboe to Launch Continuous Crypto Futures

Continuing what has been something of a rocky road for the exchange group, Cboe Global Markets has announced it is to launch continuous futures of bitcoin and ether on Cboe Futures Exchange in November.

This marks the third foray into the crypto market by Cboe, in 2017 it was the first US exchange to launch bitcoin futures, but lost out to CME Group in the battle for market share and de-listed the contract in 2019. In 2022 it re-entered the arena with the purchase of ErisX, but “realigned” its digital assets business in 2024, including the closure of the spot trading business and the folding of Cboe Digital into the group’s broader derivatives and clearing business.

Now Cboe is back, saying the new product suite will debut with bitcoin and ether Continuous futures, “offering US traders a simpler and efficient way to gain long-term exposure to digital assets, execute trading strategies and manage risk – all within a US-regulated, centrally cleared and intermediated framework”.

Unlike traditional futures contracts that may require periodic rolling, Cboe Continuous futures are planned to be structured as single, long-dated contracts with a 10-year expiration, reducing the need to roll positions over time and simplifying position management. The contracts will be cash-settled and aligned to real-time spot market prices through daily cash adjustments, using a transparent and replicable funding rate methodology.

Catherine Clay, global head of derivatives at Cboe, told a recent conference, “Perpetual-style futures have gained strong adoption in offshore markets. Now, Cboe is bringing that same utility to our US-regulated futures exchange and enabling US traders to access these products with confidence in a trusted, transparent and intermediated environment.

“We expect Continuous futures to appeal to not only institutional market participants and existing CFE customers, but also to a growing segment of retail traders seeking access to crypto derivatives,” she added. “As we continue to expand CFE’s offerings to serve all types of market participants, these futures are a next step to advancing our product innovation roadmap.”

The new  futures will be cleared through Cboe Clear US, a CFTC-regulated derivatives clearing organisation.