Coinbase Derivatives Alternate Launches Bitcoin and Ether Futures

Institutional Clients to See the Introduction of Bitcoin and Ether Futures Contracts from Coinbase
On June 5, institutional buyers will be able to purchase Bitcoin and Ether futures contracts through Coinbase Derivatives Alternate, a derivatives platform connected to the cryptocurrency exchange Coinbase. The Coinbase Ether (ETI) and Bitcoin (BTI) futures contracts will be available through brokers and third-party institutional Futures Fee Retailers (FCMs). Each contract will be sized at one Bitcoin and ten Ether, respectively.
The business reported that clients are requesting these contracts more frequently. Futures contracts let purchasers to promote or buy an asset at a fixed price at a specific future date. “With the launch of these institutional-sized USD-settled contracts, we look to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking BTC and Ether returns in a capital-efficient way,” said the trade.
Coinbase introduced a global bitcoin derivatives trade earlier in May, primarily targeting institutional purchasers headquartered outside of the United States. The marketplace advertised perpetual futures contracts for Bitcoin and Ether, which have no defined expiration date and settle trades with the stablecoin USD Coin.
Following Coinbase’s acquisition of a regulatory licence in Bermuda for digital asset trade enterprises, including token issuance and sales, the derivatives market was opened. This action comes after Coinbase made hints that it would leave the US owing to regulatory issues. The Securities and Exchange Commission (SEC) sent Coinbase a Wells Notice in March, claiming that the Nasdaq-listed business was providing unregistered securities in violation of US securities regulations. The notice also stated that additional proceedings by the SEC, including a cease-and-desist order or an injunction, could be taken against the deal. Coinbase CEO Brian Armstrong responded by criticising the agency for not enforcing enough restrictions on the sector.
Despite this, Coinbase keeps adding new products to its lineup. Most recently, it introduced a zero-fee subscription plan that enables customers to trade cryptocurrency for free in exchange for bigger rewards. Called Coinbase One, the service opens to users in the UK, Germany, and Ireland after launching in the US under a pilot programme in 2021.