CBOE Global Markets has announced plans to introduce Bitcoin and Ethereum continuous futures contracts, set for launch on November 10, pending regulatory approval. This initiative was detailed in a September 9 announcement, emphasizing that the contracts will debut on the CBOE Futures Exchange as single, long-dated instruments with 10-year expirations. This innovative structure aims to eliminate the periodic rolling requirements that are typical of traditional futures contracts, thus simplifying position management for traders interested in long-term exposure to digital assets.
The continuous futures contracts will be cash-settled and will align with real-time spot market prices through daily adjustments utilizing a transparent funding rate methodology. CBOE Clear US, a derivatives clearing organization regulated by the Commodity Futures Trading Commission (CFTC), will be responsible for clearing these contracts, which will operate within the exchange’s regulated environment.
Catherine Clay, the global head of derivatives at CBOE, highlighted that this launch brings a perpetual-style utility to US traders, a concept that has seen success in offshore markets. She indicated that the new products primarily target institutional participants, current Cboe Futures Exchange customers, and retail traders interested in accessing crypto derivatives.
This announcement coincides with a significant moment in regulatory oversight, as the Securities and Exchange Commission (SEC) and the CFTC are intensifying their coordination efforts. A joint roundtable is scheduled for September 29, aimed at fostering harmonization in digital asset oversight. Both agencies acknowledged in a statement issued on September 5 that the current fragmented regulatory landscape inhibits innovation and encourages crypto activities to move offshore.
SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham stressed that failures in coordination have created uncertainty, which obstructs economic activities, even for products that are legally permissible. The regulators emphasized the importance of harmonization, suggesting it could lower barriers to entry, enhance efficiency, and reaffirm the United States’ leadership in financial markets.
The upcoming roundtable will explore strategies for aligning US markets with the global economy, including considerations for expanded trading hours, frameworks for perpetual contracts, and coordination on portfolio margining. Additionally, the agencies aim to review exemptions that offer safe harbors for decentralized finance projects while ensuring investor protection standards are maintained.
CBOE’s roll-out of continuous futures reflects an expansion of the exchange’s product suite, which already includes VIX futures and products based on equity volatility, as well as offerings in crypto and global fixed income. This move is seen as a significant step toward bringing compliant perpetual swap trading onto US soil, a market currently dominated by offshore platforms.
To prepare market participants for these new contracts, CBOE’s Options Institute will conduct public educational courses on continuous futures on October 30 and November 20.
