Coinbase Launches 24/7 Bitcoin and Ethereum Futures Trading in the US
Coinbase, one of the largest cryptocurrency exchanges in the world, has announced plans to introduce 24/7 futures trading for Bitcoin (BTC) and Ethereum (ETH) to US customers through its regulated derivatives arm, Coinbase Derivatives.
What's New?
The platform will offer perpetual futures contracts for Bitcoin and Ethereum, allowing traders to access these markets around the clock. This is a significant development as it eliminates the restrictions of fixed market hours that have previously limited US traders' ability to manage crypto exposure continuously.
Why Does This Matter?
Greg Tusar, vice president of Coinbase’s institutional product, highlighted the importance of this move:
"Derivatives are a cornerstone of global crypto markets, accounting for over 75% of all total trading volume. Yet, much of this activity has taken place internationally, where markets operate 24/7 and offer futures contracts that aren’t confined to traditional expiries. US traders have navigated fixed market hours and expiring contracts, which can create inefficiencies – particularly for those managing crypto exposure."
Regulatory Compliance
Coinbase emphasized that it has been working closely with the Commodity Futures Trading Commission (CFTC) to ensure the product meets regulatory requirements. This regulatory compliance is expected to build confidence among institutional investors and bring greater legitimacy to the US crypto derivatives market.
Industry Impact
This launch is expected to significantly impact the US crypto derivatives landscape. By providing a regulated platform for 24/7 trading, Coinbase is addressing a gap that has previously pushed US traders to offshore exchanges. The move could increase market liquidity and provide traders with more tools to manage risk in a volatile market.
What's Next?
Coinbase Derivatives plans to continue expanding its offerings, with potential future products including additional crypto assets and different contract structures. The company stated that it remains committed to working with regulators to build a robust and compliant derivatives market in the US.
