Coinbase Derivatives Exchange Is Set To Introduce Bitcoin And Ethereum Futures – NewsTo
Coinbase Derivatives Exchange Is Set To Introduce Bitcoin And Ethereum Futures

Coinbase Derivatives Exchange Is Set To Introduce Bitcoin And Ethereum Futures


Institutional-sized contracts on Coinbase Derivatives Exchange will be 1 Bitcoin and 10 Ether in size.

Crypto exchange Coinbase keeps moving ahead with its futures contracts despite the regulatory obstacles the cryptocurrency sector faces in the US.

On June 1, Coinbase announced that it plans to launch Bitcoin and Ether futures contracts on June 5 through its derivatives exchange, which is governed by the Commodity Futures Trading Commission. Institutional investors will be the target market for the futures contracts.

The recently announced institutional-sized contracts will have a specified size of 1 Bitcoin and 10 Ether, according to Coinbase. This sizing is meant to give clients the tools they need to efficiently manage market exposure. The exchange’s decision to introduce the products was driven by the feedback it received after announcing its nano Bitcoin futures and nano Ether futures contracts.

Coinbase Derivatives Exchange Is Set To Introduce Bitcoin And Ethereum Futures

Furthermore, Coinbase announced that its derivatives exchange would be committed to meeting the demands of institutional investors by providing them with creative solutions catered to their individual requirements.

In a step toward its global development strategy, Coinbase announced on May 2 that it would establish a derivatives exchange in Bermuda. Through perpetual futures contracts, the exchange will let traders speculate on the prices of Bitcoin and Ethereum. These futures will provide up to 5x leverage, enabling traders to increase their exposure to potential price changes.

All deals made on the exchange will be completed in Circle’s USD Coin USDC stablecoin, according to the announcement from Coinbase, giving users a consistent and trustworthy way to represent their money’s value.

In keeping with its continuous attempts to address the lack of regulatory clarity surrounding the trade of digital assets in the United States, Coinbase decided to launch a derivatives exchange. The U.S. Securities and Exchange Commission (SEC) responded to Coinbase’s demand for a writ of mandamus by stating that the regulation process may take several years and that it is not under any time constraints to complete the process quickly.

The commission made it clear that it intended to use enforcement measures to clarify how crypto assets should be regulated. However, the SEC made it clear that the public remarks made by its head, Gary Gensler, should not be taken as formal instructions or declarations of the commission’s official policy.

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