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Crypto’s Surge in Leverage Encounters Risk Management with Introduction of New Futures

Crypto’s Surge in Leverage Encounters Risk Management with Introduction of New Futures

Bitget-RWA2025/11/20 10:24
By:Bitget-RWA

- Cboe Futures Exchange launches Bitcoin and Ether Continuous Futures on Dec 15 to hedge crypto volatility. - Cash-settled contracts with cross-margining aim to mitigate risks from leveraged trades amid recent $168M liquidation events. - CFTC-aligned margin requirements and educational sessions highlight growing institutional interest in structured crypto derivatives. - Kraken’s $20B IPO and Trump’s Genius Act signal maturing markets and U.S. regulatory influence on global crypto governance. - Record lever

Cboe Futures Exchange, a prominent player in the derivatives sector, plans to introduce Continuous Futures contracts for

and on December 15, giving investors additional instruments to manage crypto market fluctuations . These cash-settled, centrally cleared contracts will be available nearly around the clock, five days a week, and will support cross-margining with Cboe’s current Bitcoin and Ether futures offerings. The launch responds to increasing demand for risk management tools, especially as the crypto sector faces intense volatility, highlighted by triggered by a heavily leveraged short trade.

The Continuous Futures contracts are designed to tackle ongoing issues in crypto trading, where leveraged positions can worsen losses during sharp market downturns. Cboe’s margin policies, which comply with CFTC standards, focus on openness and reducing counterparty risks.

to explain how the new contracts work, reflecting the rising institutional appetite for structured crypto derivatives. At the same time, notes that leverage in the crypto market reached unprecedented levels in Q3 2025, with decentralized finance (DeFi) protocols such as and Fluid facilitating over $3 billion in loans on within just five weeks .

Crypto’s Surge in Leverage Encounters Risk Management with Introduction of New Futures image 0
Market instability remains pronounced ahead of the Federal Reserve’s December meeting, with uncertainty about interest rate cuts fueling a cautious market mood. (DOGE), for example, has dropped 37% since , even though derivatives markets have shown some signs of recovery. Experts point out that while open interest in crypto futures has bounced back, technical signals like the RSI and MFI indicate continued downward pressure.

Regulatory changes are also influencing the sector. Kraken, a U.S. exchange valued at $20 billion after raising $800 million, has

, reflecting the industry’s growing maturity. Meanwhile, the Genius Act from the Trump administration, which for stablecoins, highlights efforts to reinforce the dollar’s role in crypto transactions. These initiatives are part of a broader push to bring global crypto regulation in line with U.S. standards, potentially transforming international digital asset movement.

As the crypto landscape shifts, platforms like Cboe are establishing themselves as essential infrastructure for both institutional and individual traders navigating market turbulence. With leverage at all-time highs and regulatory changes accelerating, the sector’s capacity to balance innovation with effective risk management will be crucial.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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