The US may be setting up more difficult challenges, regulation-wise, for the industry of cryptocurrency, but that is not stopping Coinbase, the public cryptocurrency exchange, from progressing with its planned futures contracts. On June 1st, Coinbase announced that it was planning to introduce Ether and Bitcoin futures contracts.
Coinbase’s Latest Plans
The introduction will take place on June 5th via its derivatives exchange which is regulated by the Commodity Futures Trading Commission. Institutional investors will be the target of the upcoming futures contracts. As per Coinbase, the upcoming contracts that will be institutional-sized will be either of two specific sizes – 10 Ether or 1 Bitcoin.
The sizing, as per the plans of the exchange, should help clients effectively manage the exposure to the market. The decision behind launching these products was apparent feedback received by Coinbase after it introduced its nano Ether and nano Bitcoin futures contracts.
Furthermore, the exchange clarified that its exchange of derivatives would remain to dedicate its services to ensure that institutional investors’ requirements are met. It will do so by offering inventive solutions that will be customized for each institution’s specific needs.
On May 2nd, Coinbase revealed the exchange’s next strategic move that would involve launching an exchange for derivatives in Bermuda. It was one more step in its strategy for international expansion. The exchange shall let traders speculate about Ethereum and Bitcoin prices via futures contracts that are perpetual.
The contracts will have a leverage offering of a maximum of 5 times. As such, it will let traders amplify how much they are exposed to possible movements in price. The announcement also mentioned that every trade conducted via the exchange shall have its settlement in the USD Coin stablecoin of Circle.