Coinbase’s New Institutional Bitcoin And Ether Futures
Key Points:
- Coinbase Derivatives Exchange launching BTC and ETH tracked futures for institutional clients starting June 5th.
- BTI and ETI futures contracts are offered at significantly lower fees than traditional offerings, which can be settled in USD monthly.
- Institutional traders can use the products to hedge market bets, express long-term market views, or utilize the products in complex trading strategies.
Coinbase Derivatives Exchange, the regulated futures offering by crypto exchange Coinbase (COIN), has announced that it will begin offering bitcoin (BTC) and ether (ETH) tracked futures for institutional clients starting June 5.
This is a significant development in the growing crypto derivatives market, which is currently valued at over $134 billion in notional volume traded across exchanges.
Coinbase has created these products to cater to increased institutional demand following the successful issuance of its nano Bitcoin (BIT) and nano Ether (ETI) contracts last year. The BTI and ETI futures contracts, sized at 1 bitcoin and 10 ether per contract respectively, will be settled in U.S. dollars monthly. This move provides institutional traders with a new way to hedge market bets, express long-term market views, or utilize the products in complex trading strategies.
Coinbase has also stated that BTC and ETI are offered at “significantly lower fees” compared to traditional offerings, although specific fees were not mentioned as of Friday. This is great news for institutional clients who will be able to save money while engaging in crypto derivatives trading.
However, with the rapidly growing popularity of the crypto derivatives market, regulatory scrutiny is likely to increase. Therefore, it is important that companies like Coinbase Derivatives Exchange continue to prioritize compliance and transparency to ensure that this market remains sustainable and secure for all participants.
The addition of BTC and ETH tracked futures to Coinbase Derivatives Exchange’s offerings is a positive development for the institutional trading community, and a sign of the increasing maturity of the crypto derivatives market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News