Cboe Global Markets has announced plans to launch continuous futures contracts for Bitcoin and Ether on November 10. According to the derivatives exchange, these contracts are designed to provide US traders with an easy and effective way to gain long-term exposure to the top cryptocurrencies.
While waiting for regulatory approval, Cboe aims to expand its digital assets offerings to serve both institutional and retail traders. The derivatives exchange said that the continuous futures contracts will be listed on the Cboe Futures Exchange (CFE).
However, these futures differ from traditional contracts by offering a single, long-term agreement with a 10-year expiration. The futures will further be cash-settled and adjusted daily using real-time Bitcoin and Ether spot prices.
In addition, this structure aims to make position management easier by eliminating the frequent use of contract rolls. It will serve the expanding demand for U.S.-regulated alternatives to perpetual-style futures, which have become very popular in offshore markets.
Catherine Clay, the exchange’s Global Head of Derivatives, noted, “Perpetual-style futures have gained strong adoption offshore. Cboe is now bringing that utility to a U.S.-regulated exchange.” The continuous futures are likely to attract institutional participants, current CFE clients, and retail traders who have grown more interested in crypto derivatives.
The product launch also broadened the exchange’s product range. Its flagship Cboe Volatility Index (VIX) futures are well known, and the exchange has been expanding its portfolio of digital asset-based futures. The exchange’s diversification of derivative products indicates that it is determined to remain a leader in traditional and digital finance.
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The futures will be cleared by Cboe Clear U.S., a derivatives clearing organization regulated by the Commodity Futures Trading Commission (CFTC). Furthermore, adhering to U.S. regulatory standards ensures that all transactions involving the product are secure for safe trading.
Cboe also aims to expand its clearing services and establish itself in the international derivatives market. This will enable the exchange to provide services to more retail and institutional traders who seek long-term, regulated exposure to Bitcoin and Ether.
With digital asset markets continuously maturing, the derivatives exchange can be seen as a key player in bridging between cryptocurrency and traditional finance due to its continued product innovation.
The exchange also highlighted that it would educate traders about these new products. Cboe will offer courses on continuous futures on October 30 and November 20. These courses will equip the traders with the tools and knowledge needed to navigate such new offerings. The sessions will be open to the public and will be used to introduce the market to this new product.
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