Cboe Proposes 24/7 Continuous BTC & ETH Futures
Cboe Futures Exchange (CFE) has filed with the SEC to introduce continuous Bitcoin futures and continuous Ether futures, offering cash-settled, no-expiry contracts that trade nearly 24/7 (23 hours a day). These products, benchmarked to the CME CF Bitcoin and Ether Reference Rates (CF Benchmarks), represent 1 BTC or 50 ETH each. By eliminating roll costs and funding-rate uncertainty, the continuous Bitcoin futures and continuous Ether futures aim to boost liquidity, narrow spreads and reduce basis risk, making them more attractive to institutional investors. Pending SEC approval, the launch is expected in mid-2024, marking a significant step toward regulated, around-the-clock crypto derivatives trading.
Bullish
The introduction of continuous Bitcoin futures and continuous Ether futures is expected to have a bullish impact on BTC and ETH prices. These products extend trading hours to nearly 24/7, reducing trading gaps and basis risk while eliminating roll and funding costs. In the short term, this may drive increased trading volumes and tighter spreads, providing more opportunities for arbitrage and hedging. Over the long term, enhanced liquidity and regulated, around-the-clock access are likely to attract institutional investors, deepen market depth and support sustained price appreciation.