Cboe Global Markets plans to launch continuous bitcoin and ether futures, the exchange said on Tuesday.
Continuous futures are different from traditional futures in that they don’t need frequent rolling. They are instead set up as single contracts that last up to 10 years, which can make it easier when managing positions.
"These contracts will be cash-settled and aligned to real-time spot market prices through daily cash adjustments, using a transparent and replicable funding rate methodology," Cboe said in a statement. They will begin trading Nov. 10, pending regulatory review.
"Perpetual-style futures have gained strong adoption in offshore markets. Now, Cboe is bringing that same utility to our U.S.-regulated futures exchange and enabling U.S. traders to access these products with confidence in a trusted, transparent and intermediated environment," Cboe's Global Head of Derivatives Catherine Clay said in the release.
Cboe, short for the Chicago Board Options Exchange, became the first U.S. exchange to offer bitcoin futures in 2017, but then halted adding new contracts roughly two years later when a market downturn caused interest to wane. Recently, with crypto enjoying a bullish market, Cboe has been especially active when it comes to trying to list more and more exchange-traded funds that track specific digital assets.
"The new bitcoin and ether continuous futures will be cleared through Cboe Clear U.S., a CFTC-regulated derivatives clearing organization," the exchange said Tuesday.
"We expect Continuous futures to appeal to not only institutional market participants and existing CFE customers, but also to a growing segment of retail traders seeking access to crypto derivatives," Clay added.
