Coinbase Derivatives says its primary goal in launching new crypto futures contracts is to create markets that offer retail traders diversification, price discovery, risk management, and margin.
Since launching their futures contracts for Bitcoin Cash (BCH) and Litecoin (LTC), they claim to have “seen deeper and tighter markets, and we are excited for our broker partners and FCMs to unlock access in the coming weeks.”
Consistent with Coinbase’s (NASDAQ:COIN) overall futures strategy, these contracts will aim to significantly improve access “to digital asset trading, allowing traders to participate in the crypto market with reduced upfront capital requirements and, more importantly, within a regulated framework.”
These contracts, sized at 1 BCH, 5 LTC, and 5000 DOGE, aim “to offer enhanced trading opportunities in the crypto market, fostering a more inclusive and dynamic trading environment. Introducing additional futures contracts empowers retail traders to capitalize on price movements and hedge their existing holdings, catering to seasoned investors and retail enthusiasts alike.”
Coinbase Derivatives has witnessed consistent trading activity “in its nano Bitcoin (BIT) and Ethereum (ET) contracts, with over $5bn in notional traded YTD.”
Responding to the growing retail demand, we’ve expanded our futures contracts “to include more digital assets, meeting the needs of our expanding network of traders.”
As the CFTC-regulated futures exchange offering “margined futures contracts for Bitcoin Cash, Dogecoin, and Litecoin, Coinbase Derivatives remains committed to upholding the highest standards of integrity and transparency.”
By adhering to stringent regulatory requirements and “collaborating with leading third-party FCMs and retail brokers, we provide retail customers with a safe and secure platform for trading derivatives of digital assets.”
Establishing these markets ensures critical price discovery “for additional crypto assets, furthering our goal to bridge the gap between traditional finance and digital assets.”
Coinbase concluded that they now eagerly anticipate “the maturation of these contracts and the liquidity they will bring to retail and institutional investors in the regulated market.”