The Chicago Board Options Exchange (CBOE) is considering converting its continuous Bitcoin and Ether futures into perpetual futures, a move that would position the exchange to compete in one of crypto’s fastest-growing derivatives markets following recent regulatory changes in the United States.
The Wall Street Journal on Tuesday reported that CBOE’s global head of derivatives, Rob Hocking, said the exchange is exploring the conversion after the US Commodity Futures Trading Commission (CFTC) approved cryptocurrency perpetual futures for prediction market Kalshi and outlined a regulatory pathway for other registered US exchanges to offer similar products.
Hocking did not provide a timeline for the potential conversion or explain what benefits it would bring to CBOE. The exchange launched its continuous Bitcoin (BTC) and Ether (ETH) futures last December, offering contracts with expirations extending up to a decade.
Source: Nate Geraci
Perpetual futures, or “perps,” were popularized by crypto derivatives exchange BitMEX and have since become the dominant crypto derivatives product. Unlike traditional futures contracts, perpetuals have no expiration date, allowing traders to maintain leveraged positions indefinitely while prices are kept in line with the underlying asset through periodic funding payments.
Demand for the products has accelerated following the CFTC’s decision. According to Tuesday’s report, Kalshi’s cryptocurrency perpetual futures have generated more than $8.5 billion in trading volume within weeks of launching.
The regulator’s approval has also sparked opposition from established futures exchanges. Earlier this month, the Chicago Mercantile Exchange sued the CFTC, arguing that allowing Kalshi to list perpetual futures violates federal law and has caused “textbook competitive injury” to incumbent exchanges.
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Perps gain traction across centralized and DeFi markets
The market for perpetual futures continues to expand. Earlier this month, Coinbase launched perpetual futures tied to stock indexes, giving eligible US traders access to leveraged exposure to sectors such as artificial intelligence, defense and Chinese equities. The launch followed Coinbase International Exchange’s March rollout of 24/7 futures on US-listed stocks for eligible non-US traders.
Interest in commodity perpetuals is also increasing, with BitMEX pointing to growing demand for commodity perpetual swaps amid recent heightened volatility in oil and gold prices.
Decentralized markets have likewise become major hubs for perpetual trading. Decentralized exchanges processed more than $22.5 billion in perpetual futures volume over the past 24 hours and roughly $663 billion over the past 30 days, according to DeFiLlama. Hyperliquid accounted for the majority of that activity.
Perp volumes across DeFi exchanges. Source: DeFiLlama
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