Cboe’s Continuous Futures and The Rise of Decentralised Yield Strategies in Crypto
On 9 September 2025, Cboe Global Markets, one of the world’s leading derivatives exchanges, announced plans to launch “Continuous Futures” for Bitcoin and Ethereum on its US-regulated Cboe Futures Exchange (CFE). Set to debut on 10 November 2025, these contracts represent a significant step toward bringing perpetual-style trading mechanics into the mainstream, regulated environment.
While currently pending regulatory approval from the Commodity Futures Trading Commission (CFTC), this development not only signals growing institutional interest in crypto derivatives but also a broader convergence between traditional finance (TradFi) and decentralised finance (DeFi). For platforms like Prodigy.Fi, a fully onchain marketplace for Dual Currency Investments (DCIs), this move highlights the increasing demand for sophisticated, yield-generating strategies that can capitalise on long-term crypto exposure.
As the crypto market matures, tools that offer continuous exposure without the friction of frequent contract rollovers are becoming essential. Cboe’s initiative addresses a pain point long faced by US traders: the limitations of offshore perpetual futures, which dominate global volumes but operate outside regulatory safeguards. By introducing long-dated, cash-settled contracts with daily funding adjustments, Cboe aims to democratise access to these instruments for both institutions and retail participants. Yet, while this bridges a gap in regulated products, it also raises questions about how decentralised platforms can complement such offeri ngs, providing even greater flexibility and transparency through blockchain-native solutions.
Key Takeaways
Cboe is set to launch Continuous Futures for Bitcoin and Ethereum on 10 November 2025, pending CFTC approval, bringing perpetual-style trading into a regulated US environment.
These contracts feature 10-year maturities, daily cash adjustments, and cash settlement, reducing rollover costs while offering long-term, seamless exposure.
The move could accelerate institutional adoption, enhance liquidity, and improve price discovery, but challenges remain around regulatory approval and the lack of true perpetual mechanics.
Prodigy.Fi complements Cboe’s offering by providing DeFi-native yield strategies through Dual Currency Investments (DCIs), enabling onchain, permissionless ways to generate returns.
The broader trend points toward TradFi–DeFi convergence, where regulated futures and decentralised vaults work in tandem to expand opportunities for both institutional and retail participants.
Understanding Cboe’s Continuous Futures: A New Era for Crypto Derivatives
Traditional futures contracts, including those for Bitcoin and Ethereum already available on exchanges typically expire on a monthly or quarterly basis. Traders must “roll” their positions (read: closing out expiring contracts and opening new ones) to maintain exposure, incurring costs from spreads, commissions, and potential slippage. This process can eat into returns, especially in volatile markets where timing is critical.
Cboe’s Continuous Futures is said to combat this. Structured as single contracts with a 10-year expiration, they eliminate the need for routine rollovers, offering seamless, long-term exposure to Bitcoin and Ethereum prices.
As Catherine Clay, Cboe’s Global Head of Derivatives, noted during her remarks at the HOOD Summit in Las Vegas, “Perpetual-style futures have gained strong adoption in offshore markets. Now, Cboe is bringing that same utility to our US-regulated futures exchange and enabling US traders to access these products with confidence in a trusted, transparent, and intermediated environment.”
Key features of these contracts include:
- Long-Dated Maturity: With a 10-year horizon, positions can be held indefinitely without rollover hassles, ideal for hedging or speculative strategies spanning years.
- Perpetual-Style Mechanics: Daily cash adjustments via a transparent funding rate that is tied to the difference between the contract price and spot market prices, mimic the continuous nature of offshore perpetuals. This ensures the futures price stays closely aligned with real-time spot values for Bitcoin and Ethereum.
- Cash Settlement: No physical delivery of assets. Settlements are in US dollars, reducing complexity and counterparty risks.
- Regulated Infrastructure: Trading on the CFE and clearing through Cboe Clear US, a CFTC-registered derivatives clearing organisation, provides institutional-grade security and oversight.
These elements make the product appealing for a wide audience. Institutional investors who prioritise compliance and risk management can now access crypto exposure without venturing into unregulated waters. Retail traders often sidelined by offshore platforms’ accessibility barriers gain a pathway to sophisticated derivatives under familiar regulatory umbrellas.
This launch builds on Cboe’s crypto trajectory. The exchange pioneered Bitcoin futures in 2017 and has since expanded with Ethereum futures and index products. In June 2025, it migrated marginal Bitcoin and Ethereum futures to the CFE, further solidifying its digital asset footprint. According to Kaiko research, perpetual futures already account for 68% of Bitcoin trading volume in 2025, with open interest exceeding $876 billion.
The Broader Market Impact: Institutional Adoption and Regulatory Evolution
By offering perpetual-like exposure in a CFTC-regulated setting, it lowers barriers for US-based entities wary of offshore risks, such as platform insolvencies or jurisdictional uncertainties. This could accelerate institutional inflows, especially as Bitcoin ETFs and Ethereum staking products have already drawn billions since their approvals.
For the market at large, these contracts could enhance liquidity and price discovery. Daily funding mechanisms promote convergence between futures and spot prices, potentially stabilising volatility spikes. Retail participation is another boon. With simplified position management, everyday traders can pursue long-term strategies without the expertise required for constant rebalancing.
However, challenges remain. Pending CFTC approval introduces uncertainty, and the 10-year maturity, while innovative, may deter short-term speculators who prefer the true “perpetual” nature of offshore products without expiration. Critics might also argue that cash settlement limits direct crypto ownership, appealing less to those seeking actual asset accumulation.
This evolution reflects a maturing ecosystem where regulation and innovation coexist. As platforms like Binance and Bybit dominate derivatives volumes, regulated alternatives like Cboe’s could foster trust, attracting conservative capital and reducing systemic risks. Yet, this TradFi approach, with its intermediated structure, contrasts sharply with DeFi’s permissionless ethos, highlighting opportunities for hybrid solutions.
Prodigy.Fi: Empowering Onchain Strategies
While Cboe’s Continuous Futures bring regulated sophistication to crypto derivatives, platforms like Prodigy.Fi are pushing the boundaries of what’s possible in decentralised environments. As a fully onchain platform for Dual Currency Investments (DCIs), Prodigy.Fi enables users to lock in fixed yields across any market through a permissionless, non-custodial vault marketplace. This is not just trading, it is about transforming idle capital into predictable opportunities amid volatility.
In the context of Cboe’s launch, Prodigy.Fi complements regulated futures by offering DeFi-native alternatives. While Continuous Futures provide long-term exposure through centralised clearing, Prodigy.Fi’s vaults enable similar perpetual-style accumulation onchain.
Consider a scenario: An institutional investor holds a 10-year Bitcoin Continuous Future for hedging. To optimise idle collateral, they subscribe to a Prodigy.Fi DCI vault, earning fixed yields while positioning for BTC accumulation below spot. Settlement occurs automatically via smart contracts, with no rollover fees or funding rate surprises beyond transparent mechanics. Moreover, with our upcoming strategy pools, they could also allocate into longer-term, actively managed vaults, removing the need to monitor or roll positions frequently. This fusion exemplifies how regulated innovations like Cboe’s can coexist with DeFi’s permissionless innovation.
The Future of Crypto Exposure: Convergence and Opportunity
Cboe’s Continuous Futures mark a pivotal moment, blending the appeal of perpetual trading with US regulatory guardrails. By 10 November 2025, they could unlock trillions in demand, fostering deeper liquidity and broader participation. Yet, as we witness this TradFi-DeFi convergence, the true power may just lie in hybrid ecosystems.
Looking ahead, we could possibly expect more of such integrations where regulated exchanges provide the foundation and DeFi platforms add layers of customisation and efficiency. For users, this means greater choice, whether through Cboe’s intermediated futures or Prodigy.Fi’s non-custodial vaults.
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