Coinbase, a leading cryptocurrency exchange, is set to launch institutional futures contracts for Bitcoin and Ether via its Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange, Coinbase Derivatives Exchange, on June 5, 2023, according to the blog post the company published on June 1, 2023.
The move follows the successful introduction of nano Bitcoin (BIT) and nano Ether (ET) contracts, which have seen significant institutional interest and demand for advanced derivatives products. The new institutional-sized USD-settled contracts are designed to give institutional participants more precision in managing crypto exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient manner.
The new contracts, known as BTI and ETI futures, are sized at 1 Bitcoin and 10 Ether per contract, respectively. They are intended to allow participants to tailor their exposure to these growing digital asset commodities with granularity, thereby enabling traders to seize opportunities in a highly dynamic market environment.
In addition to risk management and enhanced precision, these institutional-sized contracts come with significantly lower fees than traditional offerings. This move is aimed at enabling institutions to maximize their capital efficiency and reduce trading costs, thereby fostering greater accessibility and participation in the crypto ecosystem.
Coinbase has also partnered with leading Futures Commission Merchants (FCMs), brokers, and front-end providers to further support institutional clients, enabling seamless access to these futures contracts through their robust trading platforms.
Featured Image Credit: Coinbase
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