NEWSLETTER
Coinbase announced On March 10, he plans to offer the 24/7 trade for bitcoin futures (btc) and Ether (eth) to US residents. The exchange is also launching the trade of perpetual futures with long appointment expirations.
According to Coinbase, much of the current market of cryptographic derivatives is carried out outside the US borders, with US merchants who have to navigate fixed hours and contracts that overcome, “which can create inefficiencies.”
Futures are a type of derivative that implies creating a contract to buy or sell an asset at a certain price and date. When futures lack a date for the purchase and sale of an asset, they are called perpetual or “perpetual” future for abbreviation.
Regulatory uncertainty around future perpetual cryptographic has led to many exchanges to reject US residents to trade such products. In his announcement, Coinbase said he is working with the Basic Products Trade Commission for more clarity. The agency supervises the perpetual trade for basic products to ensure that these products “meet the regulatory requirements.”
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https://www.youtube.com/watch?v=av7xioy4ZVC
The cryptographic derivative market reached $ 1.3 billion in monthly negotiation volume in September 2023, <a target="_blank" data-ct-non-breakable="null" href="https://www.ey.com/en_us/insights/financial-services/crypto-derivatives-market-trends-valuation-and-risk” rel=”null” target=”null” text=”null” title=”null”>according For Point Alpha, significantly exceeding the spot cryptography market. For centralized derivatives, non -American markets lead in the negotiation volume.
Coinbase faces competition in the United States derivative market
The new Coinbase services face the competition of several companies, including the CME Group, an exchange of US derivatives with $ 6.1 billion in revenues in 2024. In the last quarter of 2024, the CME group recorded an average daily negotiation volume of $ 10 billion for cryptographic derivatives. However, derivatives are only available to operate six days a week.
In a profit call from February 2024, Lynn Martin, financial director of CME, said that cryptographic derivatives were among the “contracts that we saw the greatest increases (in) this year.”
Coinbase can also face the competition of the rival Robinhood, who announced in January his own plans to offer futures of bitcoin and Ether. Coinbase already offers an option to negotiate cryptographic derivatives for US residents in Coinbase financial markets.
Magazine: Opinion: Coinbase and Base: Is crypto becoming traditional finances 2.0?
