Cboe plans 10-year-dated Bitcoin and Ethereum futures for US
News Summary
Cboe Global Markets plans to launch “continuous futures” contracts for Bitcoin and Ether, bringing a popular trading product from decentralized finance onto US markets. The product is slated for a November 10 launch, pending regulatory review. These cash-settled contracts will offer single, long-dated contracts with a 10-year expiration, aiming to reduce the need to roll positions and simplify management. Cboe's move marks its return to expanding crypto derivatives products. US financial regulators have become more permissive towards such products under the Trump administration's friendly approach to crypto. Bitnomial and Coinbase have already pioneered the launch of US-based perpetual futures in April and July, respectively.
Background
Cboe Global Markets is a derivatives exchange under the Chicago Board Options Exchange. The company previously launched Bitcoin futures products in 2017 but later stepped back from the market. Perpetual contracts (also known as continuous futures) are futures contracts with no expiry date, highly popular in decentralized finance (DeFi) and offshore cryptocurrency exchanges. According to Kaiko research, perps account for 68% of all Bitcoin trading volume in crypto so far in 2025. US financial regulators had previously prevented the launch of such crypto derivatives products, but the Trump administration has taken a more crypto-friendly stance, opening the door for more crypto derivatives to enter the US market.
In-Depth AI Insights
What are the implications of Cboe's move for the institutionalization of the US crypto market? - Cboe's launch of 10-year continuous futures is a critical signal of traditional finance's deeper penetration into the crypto asset space. It indicates that large, regulated exchanges are actively competing for the proven volumes of offshore markets, attracting institutional investors like hedge funds and asset managers seeking long-term exposure and hedging tools through longer durations and simplified management. - Its success could accelerate the process of Bitcoin and Ethereum being perceived as mature asset classes, drawing in more traditional financial product designers and investors, thereby further blurring the lines between traditional finance and cryptocurrency. How might the Trump administration's crypto-friendly stance impact the long-term regulatory environment? - The Trump administration's friendly approach to crypto may not just be short-term policy relaxation but could signal a fundamental shift in the US digital asset regulatory framework over the coming years. This could include clearer asset classification, more flexible listing standards, and less enforcement uncertainty, thereby reducing compliance costs and encouraging industry innovation. - However, this friendly stance might also bring new challenges for market integrity and investor protection. In the event of significant market volatility or fraud, regulators and politicians could still face pressure to intervene, leading to policy swings. How will the multiple launches of perpetual contracts by various players reshape the competitive landscape in the US market? - With players like Cboe, Bitnomial, and Coinbase successively launching perpetual contracts, the US crypto derivatives market is entering a highly competitive phase. Competition will no longer revolve solely around trading fees but will increasingly focus on liquidity depth, product innovation (e.g., introducing more crypto assets, more complex structured products), technological stability, and customer service. - In the long run, this competition could lead to market consolidation, with a few exchanges possessing strong brands, technology, and regulatory relationships dominating. Furthermore, it might drive innovation in existing futures products (like CME's monthly contracts) to counter the challenges posed by perpetual contracts.