Cboe Global Markets Inc. is set to enter the competitive landscape of cryptocurrency trading by introducing long-dated versions of perpetual Bitcoin and Ether futures on November 10, pending necessary regulatory approvals. This initiative aims to bring a well-known speculative trading tool into the mainstream of U.S. markets.
Perpetual futures are distinguished by their lack of expiration dates, allowing traders to make leveraged bets on asset prices without the need to take delivery of the underlying tokens. Historically, these products have driven significant trading volumes on offshore exchanges like Binance and OKX. Cboe’s new offering, termed “continuous futures,” seeks to cater to the demand for such instruments within a regulated environment. The contracts will have ten-year terms and feature daily price adjustments, designed specifically to eliminate the complexities associated with rolling contracts while complying with U.S. market regulations.
By promoting these contracts, Cboe aims to provide both institutional and retail traders with a safer avenue for long-term investment in cryptocurrencies. The clearing of these products will occur through Cboe’s own U.S.-regulated clearinghouse, thereby enhancing trust and stability. The structure of these contracts bears similarities to perpetual futures products that were introduced by Coinbase Global Inc. earlier in the year.
Cboe’s upcoming launch mirrors a recent announcement from the Singapore Exchange, which intends to offer perpetual Bitcoin futures for institutional clients. This trend reflects a broader movement among established exchanges globally to adapt popular cryptocurrency products for mainstream use, as demand for regulated alternatives to offshore trading continues to grow.
In the crypto market, derivatives currently account for over 75% of all trading activity. Research from Kaiko reveals that perpetual futures constituted 68% of all Bitcoin trading volume through mid-June, an increase from 66% in 2024. The average daily trading volume for perpetual futures across various crypto exchanges fluctuates between $10 billion and $30 billion, depending on market trends.
Amidst these developments, U.S. Securities and Exchange Commission Chairman Paul Atkins recently indicated that the SEC and the Commodity Futures Trading Commission would engage in discussions regarding the regulation of new product categories and market innovations, including perpetual futures and continuous trading.
In light of Cboe’s announcement, shares of the Chicago-based company experienced a minor decline, falling less than 1% to $232.61, although the stock has seen an overall increase of approximately 20% in value this year.
