In an important announcement, Coinbase announced that it will launch institutional futures for the 2 major-volume coins from June 5th.
Coinbase Derivatives Exchange launches its institutional-size contracts on June 5
The US-based cryptocurrency exchange has been facing regulatory challenges in the country for some time now. In its latest move, it announced its plans to introduce Bitcoin and Ethereum for institutional investors.
According to the announcement, Coinbase will launch BTC and ETH contracts for institutional investors on June 5 through the derivatives exchange regulated by the Commodity Futures Trading Commission (CFTC). The size of the contracts was set at 1 Bitcoin and 10 Ethereum.
1/ On June 5, Coinbase Derivatives Exchange, our CFTC-regulated futures exchange, will launch BTC and ETH futures contracts for institutions.
Here's what we've built đđ:
— Coinbase Institutional đĄď¸ (@CoinbaseInsto) June 1, 2023
According to the statements in the official announcement:
- Our CFTC-regulated derivatives exchange, Coinbase Derivatives Exchange, will launch two new futures contracts to enable investors to sensitively manage risk and target attractive returns with lower fees than other US-regulated derivatives exchanges.
- Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts will be available through leading third-party institutional futures brokers (FCMs) and brokers.
- In addition to low exchange fees, eligible institutions that adopt these contracts early will be able to qualify for a variety of incentive programs.
Coinbase BTC launches ETH futures
According to Coinbase, the new institutional contracts will have the sizes of 1 Bitcoin and 10 Ether. This sizing aims to enable clients to effectively manage their investors. The decision to launch the products came after the introduction of nano-Bitcoin futures and nano-Ether futures contracts. The exchange states that its decision is based on customer demand.
In addition, Coinbase stated that the derivatives exchange will help meet the requirements of institutional investors. In addition, creative solutions tailored to the specific needs of institutions will be provided.
Stock market continues to expand despite pressure in the US
Earlier, Coinbase announced that it has opened a derivatives exchange in Bermuda. He called this move part of his international expansion plan. He also underlined that he has added BTC and ETH options through futures contracts for investors. According to the announcement, all transactions will take place on Circle’s stablecoin, USDC.
Meanwhile, Coinbase’s decision to set up a derivatives exchange comes after recent regulatory moves in the US. In response to Coinbase’s petition for the authorization letter, the SEC reported that the rulemaking process could potentially span several years. The US regulator stated that it is not under any time pressure to speed up transactions.
The SEC has made it clear that it intends to leverage enforcement actions to provide clarity regarding the regulation of cryptocurrencies. However, the SEC highlighted public statements made by chairman Gary Gensler. He stressed that these statements should not be interpreted as official guidance or official policy statements.
cryptocoin.comAs we have reported, the market is currently waiting for the US meeting on June 6th.
