Coinbase Derivatives Exchange plans to launch Bitcoin (BTC) and Ethereum (ETH) futures contracts for institutional investors on June 5, according to a June 1 report. statement.
The exchange said its decision to launch these new contracts was influenced by growing institutional interest and demand for advanced derivatives products following the success of the NanoBTC and ETH contracts. The statement added:
“With the launch of these institutional-scale US dollar settlement agreements, we are helping institutional investors to more accurately manage their crypto exposures, express directional views, and invest in bitcoin and ether in a capital efficient manner. We want to be able to track returns.”
The futures contracts are sized at 1 BTC and 10 ETH and are designed to “enable clients to manage their exposure with unmatched precision.”
Additionally, Coinbase said that these contracts “have significantly lower fees than traditional services, allowing financial institutions to maximize capital efficiency.”
Coinbase Derivatives Exchange is a futures exchange regulated by the US Commodity Futures Trading Commission (CFTC).
Fighting Coinbase regulation
Coinbase’s latest move comes amid a regulatory battle, notably with the US Securities and Exchange Commission (SEC). Financial regulators have threatened to sue exchanges over some products, including staking services.
Coinbase has also been embroiled in a legal battle with regulators over its failure to provide a new regulatory framework for the cryptocurrency industry. Instead of rulemaking, the SEC wants to use enforcement action against players in the space, the exchange said.
Amid all these problems, Coinbase has stepped up its efforts to grow its overseas business due to the unfavorable regulatory environment in the United States, and the company has decided to become an international cryptocurrency after gaining approval from the Bermuda Monetary Authority. established an exchange. The platform will allow institutional traders outside the US to trade BTC and ETH perpetual futures.
Additionally, exchange executives recently suggested that the company is considering the United Arab Emirates as a hub for international services in the Middle East and other nearby regions.
An article about the Coinbase Derivatives Exchange publishing Bitcoin and Ethereum futures first appeared on CryptoSlate.
