Cboe Dey Propose 24/7 Non-Stop BTC & ETH Futures
Cboe Futures Exchange (CFE) don file for SEC to bring continuous Bitcoin futures plus continuous Ether futures wey get cash-settled, no expiry contracts wey dey trade almost 24/7 (23 hours daily). These tins dey benchmark to CME CF Bitcoin and Ether Reference Rates (CF Benchmarks) and dem represent 1 BTC or 50 ETH each. By comot roll costs plus wahala wey dey funding-rate uncertainty, these futures dem wan make liquidity beta, make spread small and reduce basis risk, make dem dey more attractive for institutional investors. If SEC approve am, dem plan to launch am middle of 2024, wey go be big step to regulated, round-the-clock crypto derivatives trading.
Bullish
Di introduction of continuous Bitcoin futures and continuous Ether futures go fit get beta impact on BTC and ETH price dem. These products go extend trading hours go near 24/7, reduce trading gaps and basis risk and remove roll and funding costs. For short term, e fit make trading volume increase and spread tight well well, give more chance for arbitrage and hedging. For long term, better liquidity and regulated round-the-clock access go likely attract institutional investors, deepen market depth and support steady price increase.