CBOE will launch continuous futures for Bitcoin and Ether in November, which may rewrite the U.S. cryptocurrency derivation market.

CBOE Global Markets announced that it plans to launch Bitcoin (BTC) and Ethereum (ETH) continuous futures contracts on its futures exchange (CFE) on November 10, with a product validity of up to 10 years and adopting a cash settlement model. This move is seen as an important step in bringing offshore Perptual Futures functionality to the U.S. Compliance market.

Product Details: 10-Year Continuous Contract, Eliminating Rolling Pressure

According to the announcement on September 9, the CBOE's newly launched Continuous Futures contracts will operate as a single long-term instrument with a duration of up to 10 years, eliminating the need for traditional futures rollovers and simplifying the management of long-term positions.

The contract will be settled in cash and undergo daily cash adjustments through a transparent financing rate mechanism to ensure that prices remain consistent with the real-time spot market. The clearing work will be handled by CBOE Clear US, which is regulated by the CFTC.

Regulatory Advantage: Introduce “Perptual Futures” Products to the US Market

Catherine Clay, the Global Head of Derivatives at CBOE, stated that the product will provide U.S. traders with flexibility similar to offshore Perptual Futures, targeting institutional investors, existing CFE clients, and retail traders in crypto derivatives.

This announcement comes at a time when the SEC and CFTC are strengthening regulatory coordination. The two major regulatory agencies will hold a joint roundtable meeting on September 29 to discuss topics including the Perptual Futures framework, extending trading hours, and coordinating portfolio margin requirements.

Regulatory Background: Promoting Compliance Innovation, Reducing Market Barriers

The SEC and CFTC acknowledged in a statement in early September that the fragmented regulatory framework hinders innovation and leads to the outflow of cryptocurrency trading activities. The two agencies emphasized that coordinated regulation could reduce barriers, enhance efficiency, and solidify the United States' leadership in the global financial markets.

The continuous futures products from CBOE are a practical example of introducing perpetual swap trading, which originally operated mainly on offshore platforms, into the US regulatory framework.

Market Impact: Expand CFE Product Line to Attract More Capital

CBOE has previously launched VIX futures, equity volatility futures, cryptocurrency, and global fixed income related products. The newly added BTC and ETH continuous futures will further expand its cryptocurrency derivatives suite, providing more strategy options for institutional and professional traders.

Analysts believe that the product may attract some funds that were originally trading Perptual Futures on offshore platforms back to the US market, thereby increasing the Compliance trading volume of crypto assets.

Education and Promotion: Helping the Market Adapt to New Products

In order to familiarize market participants with the operation model of perpetual futures, the CBOE Options Institute will hold public education courses on October 30 and November 20, covering product structure, risk management, and trading strategies to assist investors in preparing before the new product launch.

Conclusion

The Bitcoin and Ether continuous futures planned by CBOE may become a significant turning point in the U.S. crypto derivatives market. As regulatory coordination and market education progress in tandem, these long-term contracts are expected to become a new standard for institutional and professional traders, driving the U.S. market to gain an advantage in the global crypto derivatives competition.