Coinbase Derivatives Exchange to Offer Institutional Bitcoin and Ether Futures
These products come on the back of the nano futures that were launched last year.
Jun 2, 2023 at 8:18 a.m. UTCCoinbase Derivatives Exchange, the regulated futures offering by crypto exchange Coinbase (COIN), will offer bitcoin (BTC) and ether (ETH) tracked futures for institutional clients starting June 5, it said in a Thursday release.
Coinbase said it created these products to cater to increased institutional demand following the 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 and let institutional traders hedge market bets, express long-term market views, or utilize the products in complex trading strategies.
At current prices, BTI and ETI are worth $30,000 and $20,000 in notional value respectively.
Coinbase said BTC and ETI are offered at “significantly lower fees” compared to traditional offerings, although these fees were not mentioned as of Friday.
Crypto derivatives markets are a popular, albeit mostly unregulated, market among participants with over $134 billion in notional volume traded across exchanges in the past 24 hours, data shows, with bitcoin and ether tracked products amounting to over $25 billion of these volumes.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/6c6bb5af-692c-4fcf-9f8b-a75d0549effd.png)
Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.