Coinbase Wows Crypto Industry With Bitcoin And Ethereum Futures Rollout
Coinbase Global Inc.’s COIN Derivatives Exchange announced on Friday it will launch institution-sized Bitcoin BTC/USD and Ethereum ETH/USD futures contracts on June 5.
The new contracts, named BTI and ETI futures, will be sized at 1 bitcoin and 10 ethereum per contract, respectively. This sizing is designed to allow participants to tailor their exposures to these burgeoning digital asset commodities with granularity, granting traders the flexibility to exploit opportunities in a highly dynamic market environment.
Notably, these institution-sized contracts are set to offer significantly lower fees than traditional offerings.
In a blog post, Coinbase stated this move is aimed at enhancing capital efficiency for institutions, underscoring its commitment to boosting accessibility and participation in the crypto ecosystem by reducing trading costs.
In an effort to extend further support to its institutional clients, Coinbase has also partnered with leading Futures Commission Merchants (FCMs), brokers and front-end providers.
These partnerships aim to ensure access to these futures contracts through robust trading platforms.
“With the launch of these institutional-sized USD-settled contracts, we look to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient way,” Coinbase stated.
Cryptocurrency futures contracts are financial agreements that allow traders to speculate on the future price movements of cryptocurrencies. A futures contract is a standardized agreement to buy or sell a specific asset, in this case, a cryptocurrency, at a predetermined price and date in the future. These assets provide traders with opportunities to speculate on cryptocurrency price movements without owning the underlying asset itself. They also enable hedging strategies to manage risk exposure.
Although it is equally as important to note that It’s important to note that futures trading is complex and carries inherent risks, so individuals should thoroughly understand the market dynamics before engaging in such activities.
