Cboe, a major derivatives exchange, is launching continuous futures contracts for Bitcoin (BTC) and Ethereum (ETH) on November 10th, pending regulatory approval. This is a big deal for the US crypto market.
A Smoother Way to Trade Crypto
These new futures contracts will make trading crypto easier and more efficient. Unlike traditional futures, which need to be rolled over regularly, these will be single, long-term contracts (10-year expiration). They’ll be cash-settled, based on real-time crypto prices, and adjusted daily to stay in line with the actual asset values.
Why Now?
Cboe’s move comes as the US takes a more relaxed approach to crypto regulation. With less regulatory pressure, institutional investors are increasingly adopting crypto, and Cboe wants to capitalize on this growing interest. They see a huge opportunity to serve both institutional and retail traders.
More Than Just Crypto
This isn’t just about crypto. Cboe is expanding its offerings across various markets, including equity volatility and global fixed income. The new crypto futures will be cleared through Cboe Clear US, ensuring a regulated and secure process.
Current Market Conditions
At the time of writing, Bitcoin is down slightly (1.2%) at around $111,400, and Ethereum is down 1.5% at approximately $4,292.