Coinbase has announced its plan to introduce Bitcoin (BTC) and Ethereum (ETH) futures contracts on June 5 through the derivatives exchange regulated by the Commodity Futures Trading Commission (CFTC).
According to Coinbase’s announcement, futures contracts will be aimed at institutional investors. The newly announced enterprise-scale contracts will be sized at 1 Bitcoin and 10 ethereum. This sizing will aim to enable customers to effectively manage their risks in the market. The exchange made its decision to launch these products after feedback received following the launch of nano Bitcoin (BIT) and nano Ethereum (ET) contracts.
Derivatives Exchange to be Adapted to Investors’ Needs
In addition, Coinbase stated that it will dedicate its derivatives exchange to meeting the needs of institutional investors by providing them with creative solutions tailored to their specific needs.
On May 2, Coinbase took another step in its international expansion strategy by announcing its strategic move to open a derivatives exchange in Bermuda. Specifically, the exchange will offer investors the opportunity to speculate on Bitcoin and Ethereum prices through perpetual futures contracts. These contracts will offer up to 5x leverage and allow investors to increase their exposure to potential price movements. In the announcement, Coinbase stated that all transactions conducted on the exchange will be made with Circle’s stablecoin USDC, providing a stable and reliable representation of value for participants.
Coinbase’s decision to launch a derivatives exchange coincided with ongoing efforts to address the need for regulatory clarity surrounding the trading of digital assets in the United States.
In response to Coinbase’s petition for the mandamus order, the Securities and Exchange Commission (SEC) stated that they are under no time pressure to speed up transactions, noting that the rule-making process could potentially span several years.
The Commission has made it clear that it intends to use enforcement actions as a tool to clarify the regulation of crypto assets. However, the SEC stressed that public statements by chairman Gary Gensler should not be interpreted as official guidance or official policy statements issued by the commission.
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