Coinbase Launching ‘Nano’ Bitcoin Futures via Derivatives Exchange

Retail investors will be able to trade crypto futures through Coinbase starting Monday, as the largest exchange in the U.S. by volume will offer it on the new Derivatives Exchange platform.

The movement is after Coinbase acquired FairX in January as part of its goal of offering crypto futures and trading options to its customers. FairX already sells futures products and is federally listed Commodity Futures Trading Commission (CFTC), gave Coinbase a start running in the $ 3 trillion crypto derivatives market.

Now Coinbase has renamed FairX as Coinbase Derivatives Exchange, and “nano Bitcoin futures” – 1/100th of Bitcoin, marketed under the BIT ticker – are the first crypto derivative products listed. “This is one step towards creating a strong and regulated crypto derivatives market,” a Coinbase spokesperson said. Decryption.

If BIT futures are available now, they will be priced around $ 211, based on the $ 21,000 BTC price at the time of writing.

Boris Ilyevsky, Head of Coinbase Derivatives Exchange, said in a statement that FairX brings in “a world -class team with deep expertise across product development, market structure, compliance, market -leading exchange technology and a proven ability to deliver listed futures.”

Combined with Coinbase’s consumer-friendly interface, the derivatives exchange aims to make crypto derivative trading more accessible.

Futures are here one type derivative financial products, which set the date and price in the future when an asset is to be sold, regardless of the actual market price at that time. When the SEC finally allowed Bitcoin ETFs in Octoberonly allowed Bitcoin futures ETFs, yet “spot” ETFs are tied to the current price of Bitcoin.

Many traders prefer futures because they allow trading around the clock, low initial investment, “and easy long and short,” Ilyevsky said. “Our BIT futures contracts will provide the same benefits but are built with retailers.”

FTX exchange competitors are on the same path, after all get LedgerX in August. Binance also offers derivative products, but already pulled back at some markets because of regulatory concerns.

It is important to note that BIT futures are not yet offered directly from Coinbase, but only from third -party retail brokers and clearing companies. Beginning June 27, Coinbase BIT futures will be available from similar companies EdgeClear, Iron beams, NinjaTrader, Optimus Futures, stage 5and Translate.

Coinbase cannot offer futures directly until it obtains regulatory approval for its own FCM (futures commission trader) license.

Although the overall crypto market cap has shrunk dramatically in the past few weeks, Ilyevsky said that increased accessibility and the development of additional products will “open up significant growth.”

“It’s more important than ever to bring futures profits to a broader market,” he said, “so that all types of traders can access the U.S. crypto derivatives market that is regulated to cite or block the underlying crypto assets.”