CBOE weighs converting BTC, ETH continuous futures into perpetual futures: Report

Cboe Global Markets is considering converting its existing Bitcoin (BTC) and Ether (ETH) continuous futures contracts into perpetual futures, according to a report by The Block on May 15, 2024. This potential shift follows a surge in demand for perpetual futures, particularly after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January 2024. The move by Cboe aims to capitalize on the growing interest in crypto derivatives and to remain competitive with exchanges like Coinbase and Kalshi, which have recently expanded their perpetual futures offerings. Perpetual futures, unlike traditional futures contracts, do not have an expiry date, allowing traders to hold positions indefinitely as long as they meet margin requirements. This feature has made them increasingly popular in the cryptocurrency market. The report indicates that Cboe's decision is also influenced by the evolving regulatory landscape in the United States, which appears to be becoming more accommodating to crypto-related financial products. By offering perpetual futures, Cboe could attract more institutional and retail investors seeking to trade cryptocurrencies with greater flexibility and leverage.