Cboe Global Markets, the largest U.S. derivatives exchange, is exploring the listing of perpetual futures linked to the Cboe Volatility Index (VIX, the "fear index"). If realized, such contracts, which have no expiration date, would for the first time allow investors to directly bet on the spot level of the VIX.

Speaking at a panel on perpetual futures at the Bloomberg Intelligence Derivatives Market Structure Conference held in New York on the 1st local time, Rob Hocking, Cboe's global head of derivatives, said: "One of the areas we're looking at, for example, is VIX perpetual futures." He stated that once the U.S. regulatory framework for perpetual futures becomes clear, the exchange will move forward with the listing.

The VIX measures the expectation of investors in S&P 500 index options for market volatility over the next 30 days. It is one of the most widely cited indicators in financial markets, but there is currently no way to directly trade the spot level of the index itself. "There's no way to trade spot VIX right now," Hocking explained. "People keep asking Cboe: how do I invest in spot VIX? To date, there hasn't been a suitable tool."

Cboe currently lists VIX futures and options, and there are also exchange-traded funds (ETFs) tracking the VIX in the market. However, such products hold VIX derivatives rather than the VIX itself, and cannot perfectly track this volatility gauge; under normal market conditions, these products also suffer from relatively high investment costs. In fact, the ProShares VIX Short-Term Futures ETF has fallen 34% year-to-date in 2026.

Perpetual futures have no expiration date and feature a funding rate mechanism that keeps contract prices close to spot prices. Because they carry built-in leverage, these products can amplify both gains and losses. "I think perpetual futures would be a very good solution," Hocking said.

From Crypto Markets to Traditional Assets

Perpetual futures originated as a high-leverage product in the cryptocurrency market. Robinhood, a leading U.S. investment platform, announced this week that it will offer U.S. customers Bitcoin and Ethereum perpetual futures with up to 10x leverage; other cryptocurrency perpetual futures will have maximum leverage of 3x. Cboe's move reflects a broader trend among traditional U.S. exchanges: extending perpetual futures, already proven in crypto markets, to other asset classes.

Hocking, who previously worked as an equity volatility trader at Goldman Sachs, pointed out that options still hold significant advantages over perpetual futures. "Options can also achieve similar leverage, but the difference is that options have a non-linear payoff structure, which linear products cannot do." He added: "When you buy options, the upside can grow almost parabolically—the more the price moves in your favor, the faster profits accelerate." Unlike perpetual futures, the maximum loss for options buyers is limited to the premium paid, which is another core difference.

25-Year Extension with S&P

This week, Cboe extended its exclusive licensing agreement with S&P Dow Jones Indices (S&P DJI) by 25 years, valid through 2051. The agreement secures Cboe's right to list options on the S&P 500 Index (SPX) and other S&P DJI-linked products for decades to come. Since Cboe first launched options linked to the S&P 500 in 1983, the partnership has spanned more than 40 years. In 2025, SPX options volume reached a record 970.6 million contracts, up 25% year-over-year, as both institutional and individual investors increasingly used index options for hedging and yield-enhancement strategies. Cboe CEO Craig Donohue said: "This renewal allows us to grow our two core businesses, SPX and VIX, over the long term." S&P DJI CEO Kava Clay said: "Demand for U.S. equities continues to rise, and we see enormous room to deepen our collaboration."

Joint Exploration of Tokenized Options

Beyond the renewal, the two institutions announced plans to jointly develop tokenized options contracts, an initial attempt to bring index derivatives into blockchain settlement systems. The specific launch timing, contract structure, and blockchain network to be used have not yet been determined. Cboe said the tokenization project is only at the exploratory stage and is not a confirmed product. The move aligns with an industry-wide trend: traditional exchanges and index providers are both researching blockchain versions of traditional financial products, including tokenized stocks and tokenized money market funds. As U.S. regulators adopt a more accommodating stance toward blockchain-based market infrastructure, this transformation is gaining momentum.

The 25-year contract itself is highly significant. Competitors had previously challenged certain terms of the SPX options exclusivity in court; locking in exclusive rights through 2051 secures decades of business stability for Cboe. For S&P DJI, it also gains a long-term partner to promote its benchmark indices in the listed derivatives market. Cboe's flagship S&P 500 index options have an average daily notional trading volume of about $4.5 trillion. Short-term options are especially popular among individual investors willing to take on higher risk; if perpetual futures are successfully launched, they could capture some of this investor demand. Hocking called on regulators to issue clearer regulatory standards for perpetual futures: "These products have enormous room for application and innovation, but we need clear guidance from regulators. Before the game starts, you need to know the rules."