Cboe Global Markets will debut bitcoin and ether “continuous futures” on December 15, making it the first US exchange to offer crypto derivatives designed to function as perpetual futures.
The new contracts, Continuous Bitcoin Futures (PBT) and Continuous Ether 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 over expiring futures contracts. Each will have a 10-year maturity at listing and will be cash-settled, with daily financing adjustments to maintain alignment 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), although they have become popular in crypto circles because they allow traders to hold leveraged crypto positions indefinitely.
Cboe products, unlike their offshore counterparts, are designed to meet US regulatory standards, and clearing occurs through Cboe Clear US, a clearinghouse regulated by the CFTC.
“Cboe’s continuous futures structure is designed to enable simplified and efficient risk and portfolio 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, contracts are settled in cash. A daily funding amount, similar to interest payments used in perpetual futures, will adjust open positions based on the Cboe Kaiko real-time rate for bitcoin and ether.
The products could 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 with other Cboe crypto futures, such as financially settled Bitcoin (FBT) and Ether (FET) products.
Trading will run nearly 24 hours a day, from Sunday at 6 pm to Friday at 5 pm Eastern Time, with a one-hour break each day.
