Enquires@newsofbitcoin.com
Major crypto exchange Coinbase is introducing certain derivatives to retail clients on June 27.
On Monday, Coinbase Derivatives Exchange will launch Nano Bitcoin futures (BIT) – its first listed crypto derivatives product, the company said.
Coinbase Derivatives Exchange is a Designated Contract Markets (DCM) futures exchange regulated by the US Commodity Futures Trading Commission (CFTC). Bitcoin futures track the price movements of bitcoin (BTC), allowing investors to gain exposure to the coin but without having to actually hold the underlying asset.
BIT futures will initially be available for trading via several broker intermediaries, said the exchange’s head, Boris Ilyevsky, naming retail brokers EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate, as well as clearing firms ABN AMRO, ADMIS, Advantage Futures, ED&F Man, Ironbeam, and Wedbush.
Ilyevsky added that,
“Coinbase is awaiting regulatory approval on its own futures commission merchant (FCM) license so we can offer margined futures contracts directly to our clients.”
The BIT Futures contract will offer benefits such as “around-the-clock trading, lower upfront investment, leverage and the ease of going long and short,” but “with the retail trader in mind.”
Per Ilyevsky,
“At 1/100th of the size of a Bitcoin it requires less upfront capital than traditional futures products and creates a real opportunity for significant expansion of retail participation in US regulated crypto futures markets.”
According to a May report by crypto market data provider CryptoCompare, CME’s monthly futures volumes across BTC and ethereum (ETH) contracts saw “a surge” in volume in May, “indicating a rise in speculative activity.” BTC futures contracts in CME recorded the highest number traded since February 2021 with a volume of 250,650 – up 65% since April.
____
Learn more:
– Coinbase Bets On ‘Enterprise-Grade’ Liquid Staking Business
– Coinbase Pro Users Not Happy With Its Discontinuation, Cite Lower Fees
– Coinbase Says It Grew Too Quickly and Now Lays Off 1,100 Employees
– New Coinbase Disclosure Reminds Bitcoin & Crypto Owners: ‘Not your Keys, Not your Coins’
– Binance, FTX To Dominate Bitcoin Futures in 2022, But DEXes Also Gaining Ground – Report
– Slow Start for Third Bitcoin ETF, Lower Costs Could Attract More Capital
Read More: Coinbase Readies Its Nano Bitcoin Futures for Retail Clients
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
