While the cryptocurrency industry faces regulatory challenges in the United States, the public crypto exchange has taken a step ahead with its future contracts. The Coinbase Derivative Exchange’s institutional contracts will be sized at 1 Bitcoin and 10 Ether. On June 1, Coinbase shared its plans to introduce Bitcoin futures contracts through its Commodity Futures Trading Commissions – a regulated derivatives exchange. The future contracts would be aimed toward institutional investors.
According to the report Coinbase, these newly announced future contracts will also enable clients to effectively manage market exposure. However, the decision to launch the product was driven by feedback that the exchange received after the introduction of nano Bitcoin futures and nano Ether future contracts.
In addition, Coinbase announced that its derivatives exchange will be focused on meeting the needs of institutional investors through innovative solutions. Coinbase also revealed its strategic goal to launch a derivatives exchange in Bermuda as part of its international development strategy, a month ago. This new exchange would allow traders e to speculate on the prices of Bitcoin and Ethereum in the form of perpetual futures contracts. As a result, this contract will offer them leverage upto 5x and amplify their exposure to potential price movements.
Coinbase recent decision to establish a derivative exchange somehow coincides with its efforts to address the regulatory concern around digital assets in the United States. However, US SEC has communicated that it intends to utilize enforcement actions for bringing clarity about crypto asset regulation, but it shall not be interpreted as formal guidance or any official policy statements from the commission.
