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Coinbase Announces Launch Of BTC And ETH Futures On Its Derivatives Exchange

  • Coinbase has unveiled plans to introduce Bitcoin and Ethereum futures contracts for institutional investors on June 5. 
  • The institutional-sized futures contracts will be sized at 10 ETH and 1 BTC to reduce risk in the market. 
  • Coinbase’s push for regulatory clarity takes center stage around crypto circles as the exchange seeks to release more products for users. 

The United States leading digital asset Coinbase has announced its plans to launch institutional Bitcoin (BTC) and Ethereum (ETH) futures trading contracts on its derivatives exchange on June 5.

The product, which will launch on the Commodity and  Futures Trading Commission’s (CFTC) regulated derivatives exchange, will be sized at 1BTC and 10 ETH to help investors manage exposures. In its release, the exchange noted that this service would help investors “target attractive returns” for lower fees.

Coinbase Bitcoin (BTI) and Coinbase Ethereum (ETI) futures contracts will both be available to investors through regulated futures commission merchants (FCMs) and other associated brokers. The exchange also announced additional incentive programs for institutions that participate in the contracts.

The future trading contracts were borne out of popular demand as a result of its past products. The exchange introduced nano Bitcoin (BT) and Ethereum (ET) contracts and recorded a massive spike in institutional demand for advanced derivatives products. 

The company reiterated its commitment to creating a secure and transparent trading system with the necessary tools to make participants successful. 

Introducing institutional-sized contracts marks another milestone in our ongoing mission to provide accessible and cutting-edge financial instruments to market participants and underscores our dedication to solutions tailored to the needs of institutional clients,” the statement reads.

On May 2, Coinbase announced its plans to open a derivatives exchange in Bermuda in its international expansion plan and will let users trade perpetual future contracts with 5X leverage. Per the announcement, all trades will be settled in USDC stablecoin as it seeks to balance and value for participants. 

Coinbase march on amid regulatory uncertainty

Coinbase has restated its commitment to comply with regulatory practices across jurisdictions as it continues its international expansion. The announcement of futures trading contracts comes with the exchange seeking regulatory clarity from the Securities and Exchange Commission (SEC). 

The Commission in its reply to Coinbase’s writ of mandamus stated that the rulemaking process could stretch into many years but will continue to employ enforcement actions to bring clarity to the sector. The SEC also added that public statements do not constitute guidance or policy statements. 

While regulations in the United States remain unclear, Coinbase continues its global push as it seeks to fight for a higher market share with competitors.

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