Coinbase, a popular cryptocurrency exchange, announced that it will launch Bitcoin and Ethereum futures contracts for institutional investors on June 5. Coinbase will launch these products through its CFTC-regulated Coinbase Derivative Exchange, offering lower fees than other US-regulated derivatives exchanges. The company has collaborated with leading Futures Commission Merchants (FCMs), brokers, and front-end providers to enable institutional clients seamless access to these contracts.
According to Coinbase, the Bitcoin (BTI) and Ethereum (ETI) futures contracts will be accessible through leading third-party institutional futures commission merchants (FCMs) and brokers. To help investors manage their portfolios effectively, BTI and ETI will be available in one Bitcoin and ten Ether contracts.
Coinbase’s decision to launch these futures contracts followed the release of nano bitcoin (BIT) and nano Ether (ET) contracts earlier. The company aims 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.
Coinbase has been exploring friendlier jurisdictions for its entire range of offerings over the past two months. As part of this endeavor, it secured a license in Bermuda, where a crypto regulation has been in place since 2018. The company launched the Coinbase International Exchange for non-US institutional investors, a derivatives exchange offering perpetual futures contracts.
Although Coinbase says it is committed to the US, its disillusionment with the world’s largest crypto market came recently when regulators signaled that they might investigate the company’s staking services, calling them unregulated securities. While Coinbase has refuted these claims, the regulatory scrutiny of crypto firms in the US has become more intense in the past few months, especially after FTX’s collapse. With the prolonged downturn keeping crypto firms under check, big entities like Coinbase must look beyond the US to retain their leadership position in the crypto business.
Coinbase has announced that it will launch Bitcoin and Ethereum futures contracts for institutional investors on June 5. The company will launch these products through its CFTC-regulated Coinbase Derivative Exchange, offering lower fees than other US-regulated derivatives exchanges. Coinbase aims to empower institutional participants with greater precision in managing crypto exposure. The company has been exploring friendlier jurisdictions for its entire range of offerings, with its recent license in Bermuda and launch of the Coinbase International Exchange for non-US institutional investors. Despite regulatory scrutiny of crypto firms in the US, Coinbase remains committed to retaining its leadership position in the crypto business.