Almost a month after its launch, the Coinbase derivatives exchange introduces the first batch of its products.
In its commitment to advancing the cryptocurrency landscape, Coinbase, one of the leading public crypto exchanges, is laying out the roadmap for its Bitcoin (BTC) and Ether (ETH) futures contracts.
Scheduled for rollout on June 5th, these contracts will be made available through the company's derivatives exchange regulated by the Commodity Futures Trading Commission.
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With the launch of BTC and ETH futures, Coinbase aims to cater to the needs of institutional investors.
According to the company, these institutional-grade contracts will be set at one Bitcoin and 10 Ether, a sizing decision taken to facilitate efficient market exposure management for its clientele.
Based on the announcement, Coinbase is committed to crafting solutions that meet the unique requirements of institutional investors, and its derivatives exchange is a testament to this dedication.
Moreover, on May 2nd, Coinbase revealed its strategic decision to establish a derivatives exchange in Bermuda. The Bermuda-based derivatives exchange will allow traders to speculate on Bitcoin and Ethereum prices through perpetual futures contracts, with leverage going up to 5x.
The crypto exchange also highlighted that all transactions on the platform would be settled using Circle’s USD Coin (USDC) stablecoin, ensuring a stable and reliable value benchmark for traders.
While the company pursues the establishment of the derivatives exchange, it continues to address the need for specific regulations around digital asset trading in the United States. In response to Coinbase’s petition for a writ of mandamus, the US Securities and Exchange Commission (SEC) and its chair Gary Gensler signaled that there already are reasonable crypto regulations.
Coinbase's planned introduction of Bitcoin and Ether futures contracts underlines the company's determination to progress within the global cryptocurrency landscape while concurrently addressing regulatory complexities within the United States. The forthcoming launch reinforces the crypto exchange’s commitment to institutional investors.
