Coinbase Derivatives Exchange Will Launch Bitcoin (BTC) and Ethereum (ETH) Futures Contracts for Institutional Traders on June 5, As of June 1 statement,
The exchange said the decision to launch these new contracts was influenced by growing institutional interest and demand for advanced derivatives products following the success of its Nano BTC and ETH contracts. Statement added:
“With the launch of these institutional-sized USD-settled contracts, we aim to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking bitcoin and ether returns in a capital-efficient manner.” lets see.”
Futures contracts with sizes of 1 BTC and 10 ETH are designed to “allow clients to manage risk with unparalleled precision.”
Additionally, Coinbase said that these contracts would “attract significantly lower fees than traditional offerings, allowing institutions to maximize their capital efficiency.”
Coinbase Derivatives Exchange is a futures exchange regulated by the US Commodity Futures Trading Commission (CFTC).
Coinbase’s Regulatory Struggles
Coinbase’s latest move comes amid its regulatory struggles, specifically with the US 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 battle with the regulator due to its failure to provide a new regulatory framework for the cryptocurrency industry. According to the exchange, the SEC intends to use its enforcement functions against players rather than rule-making.
Amidst all these issues, Coinbase has increased its efforts to grow its overseas business due to the unfavorable regulatory environment in the US. The firm launched an international crypto exchange after receiving approval from the Bermuda Monetary Authority. The platform will allow institutional traders outside the United States to trade BTC and ETH perpetual futures.
Additionally, top officials of the exchange recently suggested that the firm was considering the UAE as a hub for its international service to the Middle East and other nearby regions.