Coinbase, the largest cryptocurrency exchange in the United States, revealed its plans to launch Bitcoin (BTC) and Ethereum (ETH) futures contracts on June 5 through its regulated derivatives exchange. These futures products are specifically targeted towards institutional investors.
Coinbase Introduces Bitcoin (BTC) and Ethereum (ETH) Futures
Coinbase has revealed that its institutional-sized contracts for Bitcoin (BTC) and Ethereum (ETH) will be sized at 1 Bitcoin and 10 Ethereum respectively. This sizing allows clients to effectively manage their exposures.
The decision to launch these products was prompted by feedback received after the introduction of the exchange’s nano Bitcoin (BIT) and nano Ether (ET) contracts. Coinbase’s Derivatives Exchange aims to cater to the needs of institutional investors by offering innovative solutions tailored to their requirements.
Coinbase recently revealed its intentions to launch a derivatives exchange in Bermuda as part of its global expansion strategy. The exchange’s initial offering will enable traders to speculate on the prices of Bitcoin (BTC) and Ethereum (ETH) through perpetual futures contracts with 5X leverage.
Notably, all trades conducted on the platform will be settled using the Circle’s stablecoin, USDC, providing stability to the trading process.
Crypto And US SEC
Coinbase’s recent move to expand globally with its derivatives exchange comes at a time when the crypto exchange is grappling with regulatory uncertainties surrounding digital asset trading in the United States.
In response to Coinbase’s petition for a writ of mandamus, the SEC conveyed that the rulemaking process might take considerable time, indicating a lack of urgency.
Also Read This Related: Coinbase Launches “Moving America Forward” National Campaign to Promote Cryptocurrency
The commission emphasized its intention to provide clarity through enforcement actions rather than issuing formal guidance or policy statements based on Chair Gary Gensler’s public remarks.
This suggests that while seeking regulatory clarity domestically, the largest crypto exchange in the US will continue to launch more crypto products on a global scale.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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