Cboe Set to Revolutionize Crypto Trading with 10-Year Futures

Cboe Global Markets has announced plans to launch 10-year-dated continuous futures contracts for Bitcoin and Ethereum, pending regulatory approval, marking a significant development for the U.S. cryptocurrency derivatives market. These contracts, set to begin trading on November 10, are designed to streamline trading and risk management for participants by eliminating the need for frequent contract rolling, a common feature of traditional futures.

Unlike conventional futures, which require traders to roll over positions as contracts near expiration, Cboe’s continuous futures will function as single contracts lasting up to a decade. These contracts will be cash-settled and closely aligned with real-time spot prices via daily cash adjustments and a transparent funding rate methodology. The move aims to provide a more efficient and stable trading mechanism for both institutional and retail investors, particularly as interest in crypto derivatives grows in the U.S. market.

Catherine Clay, Cboe’s Global Head of Derivatives, highlighted the growing adoption of perpetual-style futures in offshore markets and the exchange’s intention to bring similar functionality to the U.S. regulated market. “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,” she stated.

The launch aligns with broader shifts in the U.S. crypto regulatory landscape. Under the current administration, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have adopted a more accommodating stance toward digital assets, including the dismissal of enforcement actions against major exchanges like Binance, Coinbase, and Uniswap. This regulatory easing has encouraged traditional financial institutions to adopt cryptocurrencies as part of their treasury strategies, reinforcing the demand for structured crypto derivatives.

Cboe’s continuous futures will be cleared through Cboe Clear US, a CFTC-regulated derivatives clearing organization. This structure ensures compliance with U.S. regulatory standards and provides an additional layer of security for market participants. The exchange has also indicated that the products are expected to attract a diverse range of investors, including existing Cboe Futures Exchange (CFE) clients, institutional market participants, and retail traders seeking exposure to crypto markets.

The new products represent part of Cboe’s broader strategy to expand its CFE offerings, which include products related to equity volatility, digital assets, and global fixed income. As the U.S. moves toward a more crypto-friendly regulatory framework, Cboe’s move could position the country as a leading hub for crypto derivatives trading, aligning with the administration’s vision of making America the “crypto capital of the world.”