Cboe prepares to launch futures contracts for Bitcoin and Ether, which will provide a regulated and efficient access to digital assets. This also reduces the complexity of rollover for participants.
You can read more about it here:
- Cboe will launch Bitcoin and Ether Continuous long-dated futures to U.S. investors starting on November 10.
- The contracts are 10-year single instruments, with daily cash adjustment tied to the spot price.
- Cboe Clear U.S. will clear the products, which is regulated by Commodity Futures Trading Commission.
The following is a breakdown of the. press release Cboe Global Markets has announced that it will list Continuous Futures for Bitcoin on September 9.BTCEtherETHOn November 10th, pending regulatory approval.
Cboe stated that the contracts are single-contracts with a 10-year term and use a cash-adjustment mechanism similar to offshore perpetual swaps to keep the prices in line with spot BTC and ETH.
The new BTC and ETH Futures on Cboe are a boon for U.S. traders
Design of the products provides the long-term, seamless exposure that is associated with perpetual swaps but without the friction or transaction costs involved in rolling quarter contracts. The product’s design offers a simplified tool for performing basis trades, hedge holdings at spot prices, or maintain a leveraged situation without having to manage it constantly.
Cboe has said that this launch is aimed at a wide range of markets.
“We expect Continuous futures to appeal to not only institutional market participants and existing CFE customers, but also to a growing segment of retail traders seeking access to crypto derivatives. As we continue to expand CFE’s offerings to serve all types of market participants, these futures are a next step to advancing our product innovation roadmap,” Catherine Clay, global head of derivatives at Cboe noted.
The release states that the Bitcoin and Ether Continuous Futures will be cleared by Cboe Clear U.S., a derivatives clearance organization regulated under the Commodity Futures Trading Commission.
It is imperative that major financial institutions adopt a clearinghouse supervised by the federal government to manage counterparty risks.
The statement states that the Cboe CFE portfolio already includes equity volatility products and global fixed-income.
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Source: crypto.news
