Coinbase Derivatives Exchange, a derivatives platform tied to its namesake cryptocurrency exchange, will introduce Bitcoin and Ether futures for institutional clients on June 5. Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts, sized 1 Bitcoin and 10 Ether per contract, respectively, will be accessible through third-party merchants and institutional brokers from the Futures Commission (FCM), the company announced on Friday.
Coinbase in the announcement said it has witnessed increased demand for futures among investors. Futures contracts are agreements that allow investors to buy or sell an asset at a predetermined price at a specific future time.
“With the launch of these institutional-size contracts settled in USD, we seek to give institutional participants greater precision in managing crypto exposure, expressing directional views or tracking BTC and Ether returns. in a capital-efficient manner,” Coinbase said.
In early May, Coinbase launched a global cryptocurrency derivatives exchange targeting institutional clients based outside the United States. Subsequently, the new platform listed Bitcoin and Ether perpetual futures, with trades settled in USD Coin stablecoin. Unlike futures contracts, perpetual futures contracts do not have specific expiration data.
The launch of the derivatives exchange follows Coinbase’s acquisition of a regulatory license for digital asset exchange services, including the sale and issuance of tokens, in Bermuda. The step came after the publicly traded crypto firm hinted that it was leaving the United States due to regulatory concerns.
Struggles with regulators
In March, Coinbase received a Wells notice from the Securities and Exchange Commission (SEC). The notice said the Nasdaq-listed company violated US securities regulations by offering unregistered securities.
In addition, the notice stated that the SEC could take other actions against the exchange, including an injunction or a cease-and-desist order. Responding to the SEC’s move, Coinbase CEO Brian Armstrong faulted the agency for failing to provide proper regulation to the industry.
Nonetheless, the company is expanding its product offering, recently launching a no-fee subscription model that allows users to trade crypto at no cost with incentives for higher rewards. Dubbed Coinbase One, the service launched in 2021 in the US as part of a beta program and open to users in the UK, Germany and Ireland.
Coinbase Derivatives Exchange, a derivatives platform tied to its namesake cryptocurrency exchange, will introduce Bitcoin and Ether futures for institutional clients on June 5. Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts, sized 1 Bitcoin and 10 Ether per contract, respectively, will be accessible through third-party merchants and institutional brokers from the Futures Commission (FCM), the company announced on Friday.
Coinbase in the announcement said it has witnessed increased demand for futures among investors. Futures contracts are agreements that allow investors to buy or sell an asset at a predetermined price at a specific future time.
“With the launch of these institutional-size contracts settled in USD, we seek to give institutional participants greater precision in managing crypto exposure, expressing directional views or tracking BTC and Ether returns. in a capital-efficient manner,” Coinbase said.
In early May, Coinbase launched a global cryptocurrency derivatives exchange targeting institutional clients based outside the United States. Subsequently, the new platform listed Bitcoin and Ether perpetual futures, with trades settled in USD Coin stablecoin. Unlike futures contracts, perpetual futures contracts do not have specific expiration data.
The launch of the derivatives exchange follows Coinbase’s acquisition of a regulatory license for digital asset exchange services, including the sale and issuance of tokens, in Bermuda. The step came after the publicly traded crypto firm hinted that it was leaving the United States due to regulatory concerns.
Struggles with regulators
In March, Coinbase received a Wells notice from the Securities and Exchange Commission (SEC). The notice said the Nasdaq-listed company violated US securities regulations by offering unregistered securities.
In addition, the notice stated that the SEC could take other actions against the exchange, including an injunction or a cease-and-desist order. Responding to the SEC’s move, Coinbase CEO Brian Armstrong faulted the agency for failing to provide proper regulation to the industry.
Nonetheless, the company is expanding its product offering, recently launching a no-fee subscription model that allows users to trade crypto at no cost with incentives for higher rewards. Dubbed Coinbase One, the service launched in 2021 in the US as part of a beta program and open to users in the UK, Germany and Ireland.