Cboe considers Bitcoin, Ether perpetual futures conversion
In brief
- Cboe weighs conversion of Bitcoin (PBT) and Ether (PET) continuous futures into perpetual contracts
- Shift could pull institutional trading onshore to regulated US venue from offshore platforms
- Kalshi operates CFTC-approved Bitcoin perpetual, setting precedent for domestic crypto derivatives
- CME Group and US exchanges may face pressure to adapt if Cboe advances
Cboe's current setup
Cboe launched Continuous Futures contracts for Bitcoin (PBT) and Ether (PET) on December 15, 2025. The contracts carry 10-year expiration terms and use daily cash adjustment mechanisms to mimic the behavior of perpetual contracts. They reference Cboe Kaiko Bitcoin and Ether Real-Time Rates, giving them a pricing backbone tied to real-time market data.
This design allowed Cboe to offer perpetual-like exposure within existing regulatory frameworks. But true perpetuals operate differently. Converting from continuous to true perpetual futures would eliminate the 10-year expiration entirely, creating contracts that never expire.
The regulatory shift
The CFTC approved Kalshi's bitcoin perpetual futures contract in late May 2026, marking a watershed moment for domestic crypto derivatives. Before Kalshi's approval, every major perpetual futures market operated offshore, on platforms like Binance, Bybit, and dYdX. That regulatory green light opened the door for other US exchanges to pursue similar products.
Nate Geraci, president of ETF Store, flagged the potential conversion on June 23. His observation underscores the competitive stakes now at play.
What's at stake
If Cboe successfully converts its continuous futures to perpetuals, it could pull meaningful trading volume onshore. Institutional players, particularly those with compliance mandates that prevent them from touching offshore venues, would gain access to perpetual futures through a regulated US venue.
That's a material shift. Institutional capital has long sidestepped offshore perpetuals due to regulatory and compliance friction. A regulated alternative removes that friction. CME Group and other major US exchanges will face pressure to respond, as a proliferation of regulated perpetuals could fragment liquidity across multiple venues.
The question now is timing and execution. Cboe hasn't announced a formal conversion timeline, but the regulatory path is clear. Perpetual futures are coming onshore — the only question is which venue gets there first.
