Simply put
- Derivatives Exchange Cboe is looking to launch continuous Bitcoin and Ethereum futures for its U.S. clients.
- If it gets the green light from regulators, these products could be available starting in November.
- As it stands, traders in the U.S. only have access to futures that have already expired.
So, Cboe is planning to roll out these ongoing Bitcoin and Ethereum futures for U.S. clients, and the announcement came just yesterday, contingent on regulatory approval.
Typically, futures expire on a monthly basis, but Cboe has mentioned that if these contracts operate over a longer period, say a decade, investors would then have access to what they call a “continuous long-term market” based on market capitalization.
“We’ve seen a strong uptake of the permanent future style in offshore markets,” stated Catherine Clay, who heads global derivatives at Cboe.
Futures contracts are tools that let investors speculate on how asset prices might move in the future. These permanent futures, which don’t have an expiration date, are preparing for international transactions.
“Now, Cboe is introducing similar options to U.S. regulated futures markets, providing traders in the U.S. with confidence in a trustworthy, transparent, and intermediary-managed environment,” the exchange explained.
Additionally, Cboe noted that these contracts would be structured in cash, aligned with real-time spot prices.
This year, Cboe has been quite active in the crypto ETF space, even filing a rule change request with the Securities and Exchange Commission (SEC) to list funds tracking spot prices for key altcoins.
In July, Cboe BZX made a request for the Invesco Galaxy Solana ETF, attempting to bring Solana into the U.S. regulated market. It’s part of a partnership between Invesco, a global asset manager, and Galaxy Digital, a crypto-focused financial firm.
On another note, Cboe BZX and NYSE Arca have both put forward proposals asking the SEC to fundamentally change how cryptocurrency ETFs are approved.
The hope is that certain products could be listed automatically, avoiding the need for individual regulatory reviews, which would treat cryptocurrency ETFs more like traditional asset classes.
Recently, Bitcoin was trading around $111,305 after a notable drop, while Ethereum remained mostly stable at about $4,289, according to Coingecko’s data.
