Cboe Launches New Contracts for Bitcoin and Ethereum

In recent times, the increasing interest of investors in the cryptocurrency market has paved the way for the emergence of new financial products. In this context, new futures contracts for Bitcoin (BTC) and Ethereum (ETH) will be launched on December 15 by Cboe Global Markets, fully compliant with U.S. regulations.

Cboe plans to offer investors long-term cryptocurrency positions similar to perpetual futures through its new products called Continuous Futures. These contracts, designed for institutional investors who prefer not to turn to offshore exchanges where continuous contracts are popular, will be listed on the Cboe Futures Exchange under the names PBT (Bitcoin Continuous Futures) and PET (Ether Continuous Futures).

The new products will operate with a 10-year maturity and cash settlement, allowing them to track the spot price thanks to a daily funding mechanism. With these features, the obligation for investors to roll over positions as maturity approaches, which is common in traditional futures, will be eliminated. Cboe's new products were introduced to investors in September and were developed in response to growing demand for perpetual contracts in the market.

Rob Hocking, Cboe's global head of derivatives products, stated that this new structure will simplify portfolio management for investors and provide leveraged access to digital assets. Additionally, the new contracts will rely on cash settlement instead of physical delivery, and funding payments will be calculated using the Cboe Kaiko Real Time Rate. Open positions will be reviewed daily.

These new products are expected to attract significant interest from hedge funds, asset managers, and advanced retail investors who are wary of offshore platforms. Investors will be able to open short positions, engage in margin trading, and utilize cross-margining with other Cboe crypto futures products.

The new contracts that Cboe will introduce are the first example of regulated products similar to perpetuals in the U.S. This structure, which creates a new alternative for institutional investors wishing to avoid offshore risks, further facilitates access to long-term cryptocurrency positions in a regulated environment. Trading hours will continue almost uninterrupted from Sunday to Friday, with only a one-hour maintenance break.