Bitcoin and Ethereum will have "non-expiration" futures: what it means and how it affects you

Cboe will launch regulated continuous futures for Bitcoin and Ethereum next December, making it easier to invest long-term in these financial products without the complexity of constant contract renewals.

The landscape of institutional investment in crypto assets is about to undergo a significant structural change. Cboe Global Markets, one of the world's largest derivatives and securities exchanges, has confirmed the launch of its new Bitcoin and Ether Continuous Futures for next December 15th. 

This launch represents a clear attempt to close the gap between the flexibility of native cryptocurrency markets and the security of traditional regulated finance in the United States.

According to a statement released by the exchange, the design of these new financial products seeks to resolve one of the most persistent obstacles for investors who wish to maintain positions in digital assets long-term through conventional financial instruments: managing due dates. 

Until now, trading regulated futures involved constantly monitoring the contract renewal schedule, a process that often entails costs and operational friction. Therefore, with this new proposal, the market is preparing to receive an instrument that promises to drastically simplify this process.

New crypto futures contracts for continued exposure

The main innovation of these new financial products, identified by the codes PBT for Bitcoin and PET for Ether, lies in their time structure. Although they technically have a ten-year maturity at the time of their listing, in practice they function as instruments of indefinite duration for the average investor. It eliminates the need to perform the process known as "roll" or renewalwhich consists of selling a contract that is about to expire in order to buy a new one with a later date.

For investors, this translates into a much smoother experience, similar to holding the actual asset in a digital wallet, but within a financial contract environment. To ensure the price of this futures contract remains true to the real-world value of Bitcoin or Ethereum in the spot market, Cboe will implement a daily cash adjustment. This financial mechanism acts as a constant calibrator, ensuring that the contract price does not deviate significantly from the price of the underlying asset—a vital feature for those seeking accurate exposure without directly owning the coins.

Cboe explained This daily adjustment system replaces the forced convergence that occurs in traditional futures contracts at expiration. In this way, market participants can maintain their positions open for extended periods without worrying about the price distortions that typically occur as a contract nears its expiration date, enabling cleaner investment strategies focused on the long-term trend of the asset.

A regulated bet for the crypto market

Historically, perpetual futures have been the flagship product of international cryptocurrency exchanges, many of which operate outside of US jurisdiction and with varying degrees of oversight. These instruments are popular for their flexibility and leverage, but they often carry counterparty risks and a lack of transparency that deter large capital managers.

Cboe's proposal seeks to change this situation by shifting the utility of these futures contracts to a supervised and regulated environment. By launching these products under the supervision of the U.S. Commodity Futures Trading Commission (CFTC)This adds a layer of institutional protection that offshore markets do not offer. Rob Hocking, global head of derivatives at Cboe, emphasized that the goal is to provide access to these instruments in a transparent environment and with the necessary trust for intermediaries to efficiently manage risk in large portfolios.

To enhance transparency, Cboe collaborates with Kaiko, a digital asset market data provider, which ensures that contracts use real-time benchmark rates for their calculations. This guarantees investors that prices reflect real and auditable market conditions, creating an infrastructure that minimizes potential manipulation and ensures fair daily adjustments for all parties involved.

Open-ended futures that are transforming institutional crypto trading

Beyond simple price dynamics, the structure of Bitcoin and Ethereum continuous futures offers practical benefits that enhance the investor experience. As cash-settled contracts, participants avoid the complexity and risks of physically handling cryptocurrencies, such as private key custody or exposure to hacks. This makes these instruments an attractive option for those lacking the technological infrastructure to manage digital assets, as the investment is purely financial.

Another key aspect is that all transactions are processed through Cboe Clear US, a centralized clearinghouse that guarantees the fulfillment of each transaction. Simply put, this entity acts as a trusted intermediary, significantly reducing the risk of default—an essential function for large institutional investors such as pension funds or insurance companies. According to the exchange, this model is a well-established standard in traditional financial markets and facilitates the integration of cryptocurrencies into these environments.

Finally, the trading hours reflect the global and continuous nature of the crypto market, with trading active almost 24 hours a day on weekdays, Sunday through Friday. This schedule allows investors to react quickly to news or events outside of traditional trading hours, minimizing risks associated with sharp price changes at the market open.

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Towards a new era of the crypto market

The arrival of continuous futures contracts for the main cryptocurrencies on the market, driven by a recognized entity like Cboe, represents a significant step forward in the evolution of the crypto market, which is increasingly approaching the standards and mechanisms of traditional finance. This new product not only seeks to open a path for speculation, but also aims to offer instruments that facilitate a more structured, efficient portfolio management aligned with professional practices.

To ensure that investors fully understand this innovation, a [program/system/tool] has been designed an educational program with courses that will start in December and run until JanuaryThese training spaces are designed to explain in detail the particularities and practical applications of the new continuous futures of Bitcoin and Ethereum, highlighting that, although operationally they can simplify access to crypto assets, their management requires knowledge and prudence for responsible capital management.

With the launch of these futures contracts on December 15, a new chapter begins where the differences between investing in traditional assets, such as commodities, and investing in digital assets become increasingly blurred. This launch aims to more seamlessly integrate cryptocurrencies into the financial world, reflecting the growing maturity and sophistication of the market.