Coinbase Announces Launch of Futures Contracts for BTC and ETH

• It was also noted that institutional investors would have access to these products.
• Coinbase will provide contracts with a size of 1 BTC and 10 ETH for its institutional clients.

On Thursday, Coinbase, the largest cryptocurrency exchange in the United States, said that on June 5 it will begin offering futures contracts for Bitcoin (BTC) and Ethereum (ETH) on its derivatives exchange, which is regulated by the Commodity Futures Trading Commission. It was also noted that institutional investors would have access to these products.

According to Coinbase, in order to help its clients better manage their risks, it will provide contracts with a size of 1 Bitcoin and 10 Ethereum for its institutional clients. The exchange decided to release the products after receiving positive feedback on its tiny Bitcoin (BIT) and nano Ether (ET) contracts.

Eyeing Expansion Amid SEC Tussle

It was also said that the unique requirements of institutional investors will be met by Coinbase Derivatives Exchange. Coinbase has previously said that it would launch a derivatives exchange in Bermuda. This is a part of its strategy to expand internationally.

It was also said that upon launch, traders would be able to bet on BTC and ETH values using 5X leveraged perpetual futures contracts. While USDC, Circle’s stablecoin, will be used to settle all transactions.

Coinbase’s latest action comes as the cryptocurrency trading platform advocates for more regulation clarity in the United States. In response to a writ of mandamus filed by the cryptocurrency exchange. The SEC said it may take years to finalize new regulations and that it is not in a hurry.

In order to clarify the status of crypto assets, the commission has said that it would use enforcement proceedings. This indicates that the largest cryptocurrency exchange in the United States will be releasing further crypto products internationally. While also pressing for regulatory clarification at home.