A major development is coming for U.S.-based crypto traders. The Cboe derivatives exchange has announced plans to launch continuous futures for both Bitcoin and Ethereum, starting November 10 (pending regulatory review). This move will provide a much-needed, regulated alternative to the popular perpetual futures contracts currently dominated by offshore exchanges.
What Are Continuous Futures?
Cboe’s new product is designed to mimic the functionality of perpetual futures—a cornerstone of crypto trading—but within a fully regulated U.S. framework.
Key features of the new contracts include:
- 10-Year Expiration: Providing long-term exposure without the need to roll over short-term contracts.
- Cash Settlement: Contracts will be settled in cash, not the underlying asset.
- Price Alignment: Daily cash adjustments will keep the futures price aligned with real-time spot prices for BTC and ETH.
- Central Clearing: All trades will be centrally cleared and intermediated, reducing counterparty risk.
The goal is to offer a “simpler and efficient way” for traders to gain long-term exposure, execute strategies, and manage risk with confidence.
Filling a Major Gap in the US Market
Catherine Clay, Global Head of Derivatives at Cboe, highlighted that perpetual-style futures have seen massive adoption in offshore markets. Her exchange aims to bring that same utility and convenience to the U.S. market, but with the oversight and security that comes with a regulated environment.
This product is expected to appeal to a wide range of traders, from large institutions and existing Cboe customers to the growing segment of retail traders seeking safe access to crypto derivatives.
The Bigger Picture: US Regulatory Harmony
This launch is part of a broader trend of U.S. regulators opening the door to more crypto products. The announcement comes just ahead of a planned SEC-CFTC roundtable to discuss the potential for onshoring perpetual contracts that meet strict investor protection standards.
It also follows recent moves by both agencies to allow U.S.-regulated exchanges to offer crypto spot trading, signaling a coordinated effort to create a harmonious regulatory framework for the digital asset industry.
The Bottom Line
The introduction of Cboe’s continuous futures is a significant step toward legitimizing and securing the crypto derivatives market in the United States. By providing a regulated alternative to offshore perpetuals, Cboe is not only capturing demand but also helping to bring transparency and safety to a crucial part of the crypto trading ecosystem. For traders, this means more choice and better protection when betting on the future prices of Bitcoin and Ethereum.
