Cboe plans to launch a new derivatives product called Continuous futures for bitcoin (BTC) and ether (ETH) on Nov. 10, pending regulatory approval. The contracts aim to replicate perpetual-style exposure popular on offshore venues while adapting the structure to U.S. rules.
Unlike typical futures that expire monthly or quarterly, Cboe’s Continuous futures will run for up to 10 years. Positions will be adjusted daily to track spot prices through a transparent funding-rate mechanism, eliminating the frequent “roll” process traders use today. Contracts are fully cash-settled in dollars, so no crypto changes hands; final payouts reflect the underlying spot price.
Cboe expects the product to appeal to institutional investors and retail traders seeking long-term crypto exposure without the operational burden of repeatedly rolling contracts. The contracts will clear through Cboe Clear U.S., a clearinghouse overseen by the CFTC, which Cboe says aligns the product with U.S. regulatory expectations.
For traders, Continuous futures could reduce transaction costs and operational complexity when holding long-term positions. The daily funding mechanism also adds price-discovery transparency compared with opaque offshore perpetual markets. However, liquidity, funding-rate volatility and counterparty risk—despite clearinghouse protections—remain important considerations.
Note: This is not investment advice. Market participants should weigh product mechanics, regulatory approval status and trading risks before participating.
Source: CoinDesk. Read the original coverage for full details.