Key Insights:
- Coinbase will roll out a new derivatives product that will offer exposure to leading US tech stocks and crypto exchange-traded funds.
- The product will track the top 7 tech stocks, including Tesla, Meta, Nvidia, Amazon, Alphabet, Microsoft, and Apple, alongside BlackRock’s spot Bitcoin ETF.
- MarketVector will act as the official index provider.
Coinbase’s upcoming launch of the Mag7 + Crypto Equity Index Futures could be a major catalyst for its stock, COIN, which has been trading sideways despite being included in the S&P 500 earlier this year.
By providing institutions and retail investors with exposure to a combined index that offers access to the seven most prominent U.S. tech stocks, leading crypto ETFs, and its own shares in a single contract, Coinbase envisions a first-of-its-kind derivatives product.
If institutional and eventually retail investors embrace the product, it could strengthen Coinbase’s role as the go-to exchange for diversified market access. This will potentially set the stage for a rally in COIN.
Coinbase Stock Performance Since Announcement of Mag7 + Crypto Equity Index Futures
While Coinbase’s NASDAQ-listed COIN has not yet recorded any considerable growth within 24 hours of the announcement, the actual launch of the derivative product on September 22 could act as a significant catalyst for the growth of Coinbase stock. This is particularly possible if the product gains strong adoption among institutions and retail investors.
According to Coinbase, the product is history’s first futures contract to combine both traditional and digital assets in a single index. At the time of writing, COIN is 0.68% up over the last 24 hours and currently trades at $303.35
History’s First Futures Product Combining US Stocks and Crypto ETFs
Major cryptocurrency exchange Coinbase is launching a new derivatives product that will offer exposure to leading US tech stocks and crypto exchange-traded funds. The new futures product will also include exposure to Coinbase shares and will track all of these products using a single contract index.
The exchange made the announcement on Tuesday, September 3rd, via Coinbase Derivatives, stating that it would launch the Mag7 + Crypto Equity Index Futures on September 22nd.
As the name suggests, the product will track the top 7 tech stocks, including Tesla, Meta, Nvidia, Amazon, Alphabet, Microsoft, and Apple, alongside BlackRock’s spot Bitcoin ETF.
If launched, the futures product will become the first US-listed derivatives contract to provide access to both cryptocurrencies and equities. According to Coinbase, the index will track exposure to asset classes that have historically never traded together.
Mag7 + Crypto Equity Index Futures also marks the first major derivatives product from Coinbase since the exchange acquired Deribit.
At the time of acquisition, Deribit was the largest exchange for crypto options and futures.
Unlocking Retail Access for the Upcoming Coinbase Futures Product
Coinbase’s upcoming index will have multiple components, each weighted evenly at 10%. Institutional clients of the exchange will be the first to gain access, followed by retail users in the months to come, as per the announcement.
Meanwhile, the exchange pointed out that it is yet to release details of the partner platforms where users will get trading access.
The Mag7 & Crypto Equity Index Futures contract will act as a monthly, cash-settled contract, where each contract will represent $1 multiplied by the fund’s value.
According to Coinbase, the product will be rebalanced each quarter to capture market shifts, ensuring that the mix of tech stocks, crypto ETFs, and its own shares stays aligned with investor demand. The company also added that MarketVector will act as the official index provider.
Future Outlook
Coinbase’s new futures product is part of its push into derivatives and its broader vision to sit at the crossroads of traditional finance and crypto. CEO Brian Armstrong said on X that more products like this will follow as Coinbase builds what he calls the “everything app.”
The move also ties into the company’s July rebrand of its wallet to the “Base app,” a step toward creating an all-in-one platform for trading, payments, social media, and messaging.