Cboe Global Markets will debut bitcoin and ether “continuous futures” on Dec. 15, making it the first US exchange to offer crypto derivatives designed to act as perpetual futures.
The new contracts – Bitcoin Continuous Futures (PBT) and Ether Continuous Futures (PET) – will be listed on the Cboe Futures Exchange and are aimed at traders who want long-term crypto exposure without the hassle of rolling expiring futures contracts. Each will have a 10-year maturity at listing and be cash-settled with daily financing adjustments to maintain consistency with spot prices.
Cboe first announced the products in September, framing them as a response to the popularity of perpetual futures on offshore platforms. Perpetual futures, although first proposed in 1993, have found little traction in traditional finance (TradFi), while they have become popular in crypto circles because they allow traders to hold leveraged crypto positions indefinitely.
Cboe’s products, unlike their offshore counterparts, are designed to meet US regulatory standards, with clearing handled through Cboe Clear US, a CFTC-regulated clearing house.
“The structure of Cboe’s Continuous Futures is designed to enable streamlined and efficient portfolio and risk management while providing investors with a controlled way to gain some leveraged exposure to digital assets,” Rob Hocking, Cboe’s global head of derivatives, said in a statement.
Instead of physical delivery, the contracts are settled in cash. A daily funding amount – similar to the interest payments used in perpetual futures – will adjust open positions based on the Cboe Kaiko Real-Time Rate for bitcoin and ether.
The products may appeal to hedge funds, asset managers and sophisticated retail traders who have been wary of using offshore crypto platforms due to regulatory uncertainty or counterparty risks. The contracts will also allow for shorting and margin trading with potential cross-margining against other Cboe crypto futures such as Financially Settled Bitcoin (FBT) and Ether (FET) products.
Trading will run almost around the clock, from Sunday at 18.00 to Friday at 5 p.m. ET, with a one-hour intermission each day.
