Cboe to Launch 10-Year Bitcoin, Ethereum Perpetual Futures in November

Cboe Global Markets Inc. is set to introduce a 10-year perpetual futures contract for Bitcoin and Ethereum, with the launch planned for November 10, subject to regulatory approval. This initiative aims to bring one of the most speculative trading tools in the cryptocurrency market into the mainstream U.S. market. Perpetual futures contracts, which do not have an expiration date, have been a key tool for offshore cryptocurrency speculative trading, significantly contributing to platforms like Binance and OKX. These contracts allow traders to leverage their positions continuously without the need for actual token delivery.

The new perpetual futures contracts, designed with a 10-year term and daily price adjustments, aim to meet market demand within a regulated framework. This design avoids the complexities of traditional futures contract rollovers while complying with U.S. market regulations. All transactions will be cleared through Cboe's U.S.-regulated clearinghouse, providing a safer option for both institutional and retail traders to make long-term bets on cryptocurrencies. Structurally, these contracts are similar to the perpetual futures products launched earlier this year by Coinbase Global.

This move aligns with a broader trend among global exchanges to adapt popular cryptocurrency products for mainstream markets. The Singapore Exchange, for instance, announced in March its plans to offer Bitcoin perpetual futures contracts for institutional clients. This reflects a growing competition among traditional exchanges to provide compliant alternatives to offshore trading. As demand for such alternatives rises, other exchanges are also considering similar offerings.

The introduction of these perpetual futures contracts is part of a broader effort to integrate cryptocurrency derivatives into regulated markets. This follows recent discussions by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on new product categories and market dynamics, including perpetual futures contracts and 24/7 trading mechanisms. The SEC and CFTC are exploring how to regulate these new product categories and market dynamics, which include perpetual futures contracts and 24/7 trading mechanisms. This move is part of a broader effort to integrate cryptocurrency derivatives into regulated markets, reflecting the growing interest in these financial instruments among both institutional and retail investors.