Coinbase Derivatives Exchange unveils Bitcoin and Ethereum futures
The new products are targeted at institutional traders with an increasing appetite for exposure to the crypto industry.
The exchange said its decision to launch these new contracts was influenced by the increasing institutional interest and demand for advanced derivatives products after the success of its nano BTC and ETH contracts. The statement added:
“With the launch of these institutional-sized USD-settled contracts, we look to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient way.”
The futures contracts, sized at 1 BTC and 10 ETH, are designed to “allow clients to manage exposure with unparalleled accuracy.”
Additionally, Coinbase said these contracts would attract “significantly lower fees than traditional offerings, enabling institutions to maximize their capital efficiency.”
The Coinbase Derivatives Exchange is a futures exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC).
Coinbase’s regulatory struggles
Coinbase’s latest move comes amid its regulatory struggle, particularly with the U.S. Securities and Exchange Commission (SEC). The financial regulator has threatened to sue the exchange over some of its products, including its staking services.
Coinbase is also involved in a legal tussle with the regulator over its failure to provide a new regulatory framework for the crypto industry. According to the exchange, the SEC wants to use its enforcement actions against the players in the space to substitute for rulemaking.
Amid all these issues, Coinbase has increased efforts to grow its overseas business due to the unfavorable regulatory environment in the U.S. The firm launched an international crypto exchange after obtaining approval from the Bermuda Monetary Authority. The platform would allow institutional traders outside the United States to trade BTC and ETH perpetual futures.
Additionally, top executives at the exchange recently suggested that the firm was considering the United Arab Emirates as a hub for its international service in the Middle East and other nearby regions.