CBOE eyes crypto perpetuals as Kalshi upends futures market

CBOE has begun evaluating a conversion of its Bitcoin and Ether futures into perpetual contracts after crypto perpetuals generated more than $8.5 billion in trading volume on Kalshi within weeks of launch.

According to a June 23 report from The Wall Street Journal, CBOE Global Markets is considering turning its continuous Bitcoin and Ether futures into perpetual futures following recent regulatory developments in the United States.

The report cited Rob Hocking, CBOE’s global head of derivatives, who said the exchange is exploring the possibility after the U.S. Commodity Futures Trading Commission approved cryptocurrency perpetual futures for prediction market operator Kalshi.

While Hocking did not provide a timeline for any changes, the comments place one of the largest U.S. exchange operators among a growing list of firms responding to fresh competition in the perpetual futures market.

CBOE introduced its continuous Bitcoin and Ether futures contracts in December, offering products with expirations extending as far as 10 years.

According to The Wall Street Journal, the exchange is now studying whether perpetual contracts could provide an alternative structure following the CFTC’s decision to permit similar products on regulated U.S. venues.

Kalshi’s rapid growth has drawn attention from incumbent exchanges

Trading activity has accelerated quickly since Kalshi entered the market. According to The Wall Street Journal, Kalshi’s cryptocurrency perpetual futures have recorded more than $8.5 billion in volume within weeks of becoming available.

The CFTC’s approval has not been welcomed by all established exchanges. Earlier this month, the Chicago Mercantile Exchange filed a lawsuit against the regulator, arguing that the decision allowing Kalshi to list perpetual futures violates federal law. CME claimed the approval caused “textbook competitive injury” to incumbent futures exchanges.

The dispute highlights the growing importance of perpetual futures, a product that has become the dominant form of crypto derivatives trading since being popularized by BitMEX. Unlike traditional futures contracts, perpetuals do not expire and instead use periodic funding payments to keep contract prices aligned with the underlying asset.

Perpetual futures activity continues to expand across crypto markets

Outside traditional exchange operators, trading firms and crypto platforms continue adding new perpetual products.

Earlier this month, Coinbase launched perpetual futures linked to stock indexes, giving eligible U.S. traders leveraged exposure to sectors including artificial intelligence, defense, and Chinese equities. The rollout followed Coinbase International Exchange’s March launch of round-the-clock futures tied to U.S.-listed stocks for eligible traders outside the U.S.

Commodity-linked perpetual products are also gaining traction. BitMEX recently pointed to rising interest in commodity perpetual swaps as volatility in oil and gold markets increased.

Decentralized trading venues have become another major center for perpetual futures activity. According to data from DeFiLlama, decentralized exchanges processed more than $22.5 billion in perpetual futures volume during the past 24 hours and approximately $663 billion over the previous 30 days. DeFiLlama data showed that Hyperliquid accounted for most of that activity.

With regulated U.S. exchanges now receiving a pathway to offer perpetual futures, competition between traditional futures operators, crypto-native platforms, and decentralized venues is intensifying as firms move to capture trading activity that has historically been concentrated outside the U.S.