In 1992, economist Robert Shiller proposed a cash-settled futures market called perpetual futures that don’t expire and don’t provide delivery or coverage of the traded asset in order to lower the cost of rolling over or directly holding cryptocurrency contracts. However, such contracts are active only in cryptocurrency markets.
In order to gain exposure to an underlying asset or index, a trader can own a perpetual futures contract indefinitely. Since the contracts wouldn’t have a predetermined maturity date, this strategy allows for the creation of futures markets for illiquid assets. Furthermore, unlike equity futures, which are settled by delivering the asset at contract maturity, perpetual futures are always settled in cash — i.e., physical delivery.
In addition, as there is no asset delivery, perpetual futures