Coinbase to Roll Out BTC and ETH Futures: Institutional-Sized Contracts for Investors

Coinbase Derivatives Exchange to Roll Out BTC and ETH Futures

• Coinbase revealed its plans to introduce Bitcoin (BTC) and Ether (ETH) futures contracts on June 5 through its Commodity Futures Trading Commission-regulated derivatives exchange.
• The institutional-sized contracts will have a specific size of 1 Bitcoin and 10 Ether, intended to enable clients to effectively manage market exposure.
• All trades conducted on the exchange will be settled in Circle’s USD Coin (USDC) stablecoin, providing a stable and reliable value representation for participants.

Introduction

As the cryptocurrency industry faces regulatory challenges in the United States, public crypto exchange Coinbase is moving forward with its futures contracts by introducing Bitcoin (BTC) and Ether (ETH) futures contracts on June 5 through its Commodity Futures Trading Commission-regulated derivatives exchange.

Institutional-Sized Contracts

The newly announced institutional-sized contracts will have a specific size of 1 Bitcoin and 10 Ether, intended to enable clients to effectively manage market exposure. The decision to launch the products was driven by feedback the exchange received following the introduction of its nano Bitcoin futures and nano Ether futures contracts.

Derivatives Exchange in Bermuda

In addition, Coinbase announced its strategic move to launch a derivatives exchange in Bermuda, marking a step in its international expansion strategy. The exchange will allow traders to engage in speculation on the prices of Bitcoin and Ethereum through perpetual futures contracts. These contracts will offer leverage of up to 5x, allowing traders to amplify their exposure to potential price movements. All trades conducted on the exchange will be settled in Circle’s USD Coin (USDC) stablecoin, providing a stable and reliable value representation for participants.

Regulatory Clarity Surrounding Digital Assets

Coinbase’s decision is also driven by their efforts towards addressing regulatory clarity surrounding trading digital assets in the United States as they petitioned for writ of mandamus from U.S Securities & Exchange Commission which was communicated that it could span several years indicating that it is not under any time pressure expedite proceedings.

Conclusion

Coinbase’s move towards launching derivative exchanges provides new opportunities for institutions investors while providing stability & reliability with USDC settlement for all trades conducted on this exchanges thus responding positively towards increasing need for regulatory clarity surrounding digital assets trading