Coinbase, a popular cryptocurrency exchange, announced on its website that it will be launching Bitcoin and Ethereum futures contracts for institutional investors on June 5. These products will be available through the Coinbase Derivative Exchange, which is regulated by the Commodity Futures Trading Commission (CFTC), and will offer lower fees compared to other US-regulated derivatives exchanges.
To facilitate seamless access to these contracts, Coinbase has partnered with leading Futures Commission Merchants (FCMs), brokers, and front-end providers.
According to the statement, the Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts will be accessible through third-party institutional FCMs and brokers. The contracts will be available in sizes of 1 Bitcoin and 10 Ether, providing investors with the ability to manage their portfolios more effectively. This move comes after Coinbase recently introduced nano bitcoin (BIT) and nano Ether (ET) contracts.
Coinbase aims to empower institutional participants with greater precision in managing their cryptocurrency exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient manner through the launch of these institutional-sized USD-settled contracts.
In recent months, Coinbase has been exploring more crypto-friendly jurisdictions for its offerings. As part of this effort, the company obtained a license in Bermuda, a jurisdiction with crypto regulations in place since 2018. Coinbase established the Coinbase International Exchange in Bermuda to cater to non-US institutional investors, offering perpetual futures contracts. Additionally, Coinbase is considering options in the European Union and the UK to establish its base.
While Coinbase maintains its commitment to the US market, it has faced regulatory challenges. Recently, regulators indicated a potential investigation into the company’s staking services, classifying them as unregulated securities. Coinbase has denied these claims.
The regulatory scrutiny of crypto firms in the US has intensified in recent months, especially after the collapse of FTX. To maintain their leadership position in the crypto industry, major players like Coinbase must explore opportunities beyond the US, considering the ongoing downturn and increased regulatory scrutiny in the domestic market.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
