Coinbase Introduces Bitcoin and Ether Futures for Institutional Investors on Derivatives Exchange

The whole cryptocurrency realm is aware of the regulatory uncertainties existing in the US. Coinbase, being one of the key crypto players in the US, has advanced significantly over the years despite the irregularities in crypto regulation in the US.

Coinbase revealed its plan on June 1 to introduce bitcoin (BTC) and ether (ETH) futures contracts on its derivatives exchange, with the official launch scheduled for June 5.

The derivatives exchange operated by Coinbase has obtained complete regulation and oversight from the Commodities Futures Trading Commission (CFTC). This regulatory compliance ensures that the futures contracts adhere to established standards and guidelines. The primary focus of these futures contracts will be catering to the needs and preferences of institutional investors.

Coinase’s new launch is a follow-up to increased interest

The decision to launch these products was influenced by the feedback received by the exchange after introducing its nano Bitcoin futures and nano Ether futures contracts.

Coinbase has revealed that the institutional-sized contracts recently announced will have a fixed size of 1 bitcoin and 10 ether. This size has been strategically designed to assist clients in effectively managing their market exposure. Based on current prices, the BTC (Bitcoin) and ETH (Ether) contracts on Coinbase’s derivatives exchange have a notional value of approximately $30,000 and $20,000, respectively. 

Coinbase further emphasized its commitment to serving the needs of institutional investors by offering innovative solutions tailored to their specific requirements. The derivatives exchange aims to provide a platform that meets the unique demands of institutional clients in the cryptocurrency market.

The exchange mentioned in the announcement that “introducing institutional-sized contracts marks another milestone in our ongoing mission to provide accessible and cutting-edge financial instruments to market participants and underscores our dedication to solutions tailored to the needs of institutional clients.”

The exchange also mentioned its intention to provide “significantly lower fees” for the newly introduced institutional-sized contracts. However, specific details regarding the exact fee structure were not disclosed at the time of the announcement.