Cboe Explores VIX Perpetual Futures as Crypto-Style…

AI summary of the source article

Cboe Global Markets is exploring the development of perpetual futures linked to the VIX, potentially introducing a popular crypto derivatives mechanism to Wall Street's primary volatility benchmark. Unlike traditional VIX futures, a perpetual contract would eliminate fixed expiration dates and the need for scheduled position rollovers, using recurring funding rate payments between long and short traders to track the index. Because the VIX cannot be held directly as a cash asset, market makers would have to hedge using options and related volatility instruments rather than spot arbitrage. Cboe has not yet released contract specifications, funding calculations, margin requirements, regulatory filings, or a launch timetable.

Why it matters

A successful VIX perpetual could deepen the convergence between crypto derivatives architecture and regulated exchange markets, potentially opening the door for perpetual contracts across other traditional financial benchmarks.

Key facts

• Cboe is exploring VIX perpetual futures that replace contract expirations and rollovers with periodic funding payments.
• The initiative is in an early stage with no contract specifications, regulatory filings, or launch timetable disclosed.
• Unlike crypto perpetuals, market makers cannot hedge using a spot cash asset because the VIX cannot be directly purchased.