KEY ($0.00) TAKEAWAYS
- Coinbase Derivatives is launching the first 24/7 Bitcoin and Ethereum futures contracts in the US, enhancing market accessibility for traders.
- The introduction of perpetual-style futures contracts aims to fill a gap in the US market, offering traders a product that aligns with global standards.
- These initiatives are designed to make US futures markets more competitive and efficient, addressing challenges faced by traders due to fixed market hours and expiring contracts.
- Coinbase is collaborating with the CFTC and partners to ensure regulatory compliance and meet client needs with these new products.
Coinbase Derivatives, LLC, a CFTC-regulated futures exchange, is set to introduce the first 24/7 Bitcoin and Ethereum futures contracts in the United States. This move aims to provide US traders with uninterrupted access to manage risk and capitalize on opportunities, aligning with the continuous nature of cryptocurrency markets.
In addition to the 24/7 futures, Coinbase is developing a perpetual-style futures contract. This product is designed to meet the demand from crypto-native traders and to fill a gap in the US market by offering a key product that has been missing. The initiative is part of Coinbase’s effort to make US markets more accessible, competitive, and aligned with global standards, as announced here.
The Next Era of US Futures Trading
Derivatives play a crucial role in global crypto markets, accounting for over 75% of total trading volume. However, much of this activity occurs internationally, where markets operate 24/7 and offer futures contracts without traditional expiries. US traders have faced challenges with fixed market hours and expiring contracts, leading to inefficiencies in managing crypto exposure.
Coinbase Derivatives aims to address these challenges by making regulated futures markets more accessible and transparent. The introduction of 24/7 trading for Bitcoin and Ethereum futures will allow US traders to engage in the market without waiting for traditional opening hours, thereby eliminating a significant gap.
Introducing Perpetual-Style Futures
While the launch of 24/7 trading is a significant advancement, Coinbase is also working on a perpetual-style futures contract. This product will allow traders to maintain positions without the concern of contract expirations, facilitating long-term strategy execution and risk management.
Perpetual futures are already available in global markets, but US traders have been at a disadvantage due to the lack of such products domestically. By introducing a regulated perpetual-style contract, Coinbase aims to provide US traders with a competitive edge, enabling them to execute strategies efficiently without relying on offshore alternatives.
Coinbase has been collaborating with the CFTC, partners, and market participants to ensure that the design of this product meets regulatory requirements and client needs.
Why This Matters: Impact, Industry Trends & Expert Insights
Coinbase Derivatives is set to launch 24/7 Bitcoin and Ethereum futures contracts in the US, marking a significant development in the accessibility and competitiveness of US crypto markets.
Recent industry reports indicate a growing trend of traditional exchanges entering the crypto derivatives market, as seen with the Singapore Exchange’s plans to introduce Bitcoin perpetual futures. This aligns with Coinbase’s initiative to offer 24/7 trading, filling a gap in the US market and aligning with global standards.
While specific expert opinions on Coinbase’s new offering are unavailable, a recent announcement from Coinbase about expanding its futures offerings suggests a strategic move to enhance trading opportunities and liquidity. This supports the broader impact of Coinbase’s launch on improving market accessibility and competitiveness.
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