| Key Points: – Coinbase Derivatives will launch round-the-clock Bitcoin and Ethereum futures trading, making it the first U.S.-regulated exchange to do so. – The exchange is developing perpetual-style futures with long-dated expirations for traders to maintain positions indefinitely while complying with U.S. regulations. |
Coinbase Derivatives, a futures exchange regulated by the Commodity Futures Trading Commission (CFTC), is set to launch 24/7 Bitcoin and Ethereum futures trading for U.S. traders.
The move marks a significant milestone, making Coinbase the first U.S.-regulated exchange to offer around-the-clock crypto futures trading, a practice long available on offshore platforms.
Coinbase Derivatives Introduces 24/7 Bitcoin and Ethereum Futures Trading
The company announced on Monday that the new service will be introduced in the coming weeks. The initiative aims to bridge the gap between traditional U.S. market hours and the global cryptocurrency markets, which dominate over 75% of total trading volume, primarily through international exchanges.
Unlike the CME’s crypto futures, which have daily breaks and close for the weekend, Coinbase’s new offering will allow uninterrupted trading, aligning futures with the continuous operation of cryptocurrency spot markets.
In addition to 24/7 trading, Coinbase Derivatives is developing a perpetual-style futures contract with extended expiration periods. The product is designed to provide traders with long-term exposure to digital assets without the limitations of traditional futures contracts, which expire at set dates.
Perpetual futures, commonly used in global crypto markets, have been largely unavailable in the U.S. due to regulatory constraints. The upcoming futures products will be available in both nano and large contract sizes, catering to retail traders and institutional investors alike.
Market access will be facilitated through Coinbase Financial Markets, while clearing services will be provided by Nodal Clear, ensuring compliance with CFTC regulations.
Regulatory and Legal Battles Continue for Coinbase
Coinbase has been working closely with regulators and industry participants to structure these offerings within U.S. legal frameworks. The company views these efforts as a step toward enhancing the competitiveness and accessibility of U.S.-regulated crypto derivatives markets.
Meanwhile, Coinbase remains entangled in legal challenges. The exchange recently claimed that the U.S. Securities and Exchange Commission (SEC) is planning to drop its lawsuit against the firm.
The regulator had accused Coinbase in 2023 of offering investment products without proper registration. Additionally, Coinbase faces a separate lawsuit from customers alleging the company illegally sold securities without registering as a broker-dealer.
| 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. |
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