Cboe’s Next Big Leap: Bitcoin And Ethereum Continuous Futures Scheduled For Nov. 10

Cboe, one of the world’s leading derivatives exchanges, has announced plans to launch continuous futures for the leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), pending regulatory approval. 

In response to growing investor interest in digital assets, this new product suite is set to debut on November 10. This marks a significant development for the US crypto market under the new regulatory regime envisioned by President Donald Trump, who aims to make America the “crypto capital of the world.” 

Cboe’s Shift To Meet Market Demand

According to a press release issued on Tuesday, these continuous futures will provide a more “streamlined and efficient way” for traders to engage with cryptocurrencies, execute trading strategies, and manage risk.

Unlike traditional futures contracts, which often necessitate periodic rolling, Cboe’s continuous futures will be designed as single, long-dated contracts with a ten-year expiration. 

The contracts will be cash-settled and linked to real-time spot market prices for Bitcoin and Ethereum, incorporating daily cash adjustments, utilizing a funding rate methodology, ensuring that the pricing remains closely aligned with the underlying assets.

At the recent HOOD Summit in Las Vegas, Catherine Clay, Cboe’s Global Head of Derivatives, emphasized the significance of this potential launch. She noted that perpetual-style futures have seen robust adoption in offshore markets, and Cboe aims to replicate that success within the US regulatory framework. 

Under Trump’s second administration in the White House,  regulators such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have united to provide a more eased stance toward crypto.

The agencies have dropped crypto enforcement cases against exchanges such as Binance, Coinbase, and Uniswap that began under the leadership of former SEC Chair Gary Gensler. However, the passage of key crypto bills in Congress and the House seems to signal a new dawn for digital assets in the US. 

This has prompted major institutions in the traditional finance sector to adopt cryptocurrencies like Bitcoin and Ethereum as treasury reserve assets, being one of the most important trends that has emerged this year under the new administration. 

By introducing these products, Cboe expects to cater not only to institutional market participants and existing customers of its Cboe Futures Exchange (CFE) but also to a growing segment of retail traders eager to access crypto derivatives.

Bitcoin Slips, Ethereum Follows Suit

This initiative is part of Cboe’s broader strategy to diversify and enhance its Cboe Futures Exchange product offerings. In addition to the Cboe Volatility Index (VIX) futures, the exchange aims to further expand its services with products related to equity volatility, digital assets, and global fixed income.

The new continuous futures for Bitcoin and Ethereum will be cleared through Cboe Clear US, a derivatives clearing organization regulated by the Commodity Futures Trading Commission. 

As of press time, the leading cryptocurrency, Bitcoin, trades at $111,400, recording a 1.2% drop in the 24-hour time frame. During the same period, Ethereum has dropped 1.5%, trading at $4,292. 

Featured image from DALL-E, chart from TradingView.com