The Chicago Futures Exchange (Cboe) announced plans to launch successive futures contracts for Bitcoin and ETH from 10 November, pending regulatory review. This newly introduced Cboe futures are intended to provide traders with long-term market exposure in a regulated environment in the United States, similar to that of renewable futures.
In its press release, Cboe mentioned that these new products were designed to “efficiently provide continuous and long-term market exposure” and emphasized the convenience they provided in a regulated, brokered environment in the United States. It's with the top encryption money exchange.CoinbaseThe Commission on Commodity Futures Trading (CFTC), launched in July, has a similar system for the renewal of futures.
According to Cboe, this new product line will provide United States traders with a “simple and effective way” to obtain long-term exposure to digital assets, implement trading strategies and manage risks — all within a regulated, centralized and intermediated United States framework. In addition, Cboe ' s successive futures contracts are valid for 10 years and will be settled in cash, aligning real-time bitcoin and off-the-shelf prices with daily cash adjustments.
Market demand for futures products increased
Catherine Clay, Chief of Cboe Global Derivatives, noted that the unending futures had gained a wide range of applications in offshore markets. Her exchange is now seeking to provide the same services in the United States market, in a regulated environment, so that traders can “confidently” access these products. She anticipated that Cboe's successive futures would attract not only institutional market participants and existing CFE clients, but also an increasing number of retail traders seeking access to encrypted currency derivatives.
Catherine also stated that these futures were the next step in their road map to further product innovation, as they were expanding their product lines to serve all types of market participants. It is noteworthy that this initiative was taken prior to the SEC-CFTC round table and that the two institutions intend to discuss whether to consider the domestication of durable contracts that meet investor and consumer protection standards. If approved, these products may be traded on a regulated United States exchange such as Cboe. This is also to harmonize their regulatory frameworks to better serve part of the encryption industry. In addition, the SEC and CFTC have opened doors to United States regulated exchanges to provide encrypted spot transactions.