Coinbase Derivatives Exchange, a derivatives trading platform regulated by the Commodity Futures Trading Commission (CFTC), has announced its plans to introduce institutional trading of Bitcoin and Ether futures contracts. The launch is scheduled for June 5, offering institutional investors the opportunity to manage risk and target attractive returns with lower fees.
This move comes in response to the increasing demand for advanced derivatives, following the successful launch of Coinbase Derivatives Exchange’s nano Bitcoin (BIT) and nano Ether (ET) contracts. The exchange observed a growing interest from institutional players after the introduction of these futures contracts.
The new institutional-sized contracts aim to provide investors with greater precision in managing their exposure to cryptocurrencies while efficiently tracking the returns of Bitcoin and Ether. Coinbase expressed its commitment to offering accessible and cutting-edge financial instruments tailored to the needs of institutional clients.
The newly launched BTI and ETI futures contracts represent 1 Bitcoin and 10 Ether, respectively, per contract. This allows participants to customize their exposure to digital assets and commodities, taking advantage of the dynamic nature of the crypto market to enhance investment returns.
In addition to risk management and precision, the institutional-sized contracts offer significantly lower fees compared to traditional futures offerings. This increased cost-efficiency maximizes capital utilization for institutional investors and aims to promote accessibility and participation throughout the crypto ecosystem.
Coinbase Derivatives Exchange has partnered with leading institutional Futures Commission Merchants (FCMs), brokers, and front-end providers to ensure seamless access to the futures contracts through their robust trading platforms.
The exchange emphasized its commitment to fostering a transparent and secure trading environment. It plans to support market participants by providing the necessary tools to navigate the dynamic landscape of digital commodities.
Coinbase Expands with an International Derivatives Exchange
In response to the regulatory landscape in the United States, Coinbase has been actively pursuing expansion strategies. On May 2, the exchange launched an international derivatives exchange in Bermuda.
This new derivatives exchange enables participants in eligible jurisdictions outside the US to speculate on the price movements of Bitcoin and Ethereum through perpetual futures contracts with up to 5x leverage.
Coinbase announced that settlement of all trades on the derivatives exchange would be conducted in USD Coin (USDC), a stablecoin that provides a reliable representation of asset value for traders.