Coinbase, the crypto exchange giant, has announced today its launch of Bitcoin and Ethereum futures contracts focusing on institutional investors.
In a series of statements, the CEO of Coinbase, Brian Armstrong, revealed that new offerings are available from June 5 on Coinbase Derivatives Exchange, Coinbase’s CFTC-regulated futures exchange.
“BTI and ETI futures, sized at one bitcoin and 10 ether per contract, respectively, will enable participants to tailor their exposure to these growing digital asset commodities with granularity, allowing traders to seize opportunities in a highly dynamic market environment,” according to Coinbase.
More Futures From Coinbase
Bitcoin and Ether contracts, two products that debuted last year, have gained increasing traction among institutional investors. The surge in interest in advanced derivatives products is driving the development of new contracts. The futures contracts have monthly expirations and are settled in USD.
Coinbase highlighted in a LinkedIn post that its new contracts aim to provide institutional participants with enhanced capabilities for managing cryptocurrency exposure, including precise risk management, expressing directional views, and tracking the performance of Bitcoin and Ether.
These institutional-sized USD-settled contracts offer a capital-efficient approach.
In addition to lower fees, Coinbase mentioned that eligible institutions might qualify for incentive programs as early adopters of these contracts, gaining further benefits and rewards.
Coinbase recently launched Coinbase International Exchange, supporting Bitcoin and Ethereum perpetual futures. However, access to this exchange is currently limited to a select group of users outside the United States.
By expanding its services, Coinbase aims to provide trading flexibility and meet the market’s evolving needs. This move strengthens Coinbase’s position in the crypto landscape, giving it a competitive edge over rivals like OKX and Binance.
Gemini, one of Coinbase’s major competitors, previously announced a plan to offer futures contracts to global customers.
Brian Armstrong: Innovation at Risk
Coinbase’s CEO recently shared his opinions on the state of the cryptocurrency market and the potential consequences of dismissing its significance.
In an article published in Market Watch, Brian Armstrong voiced concerns about policymakers and regulators who may write off cryptocurrencies as an unstable asset class without recognizing their broader impact and potential.
Armstrong has repeatedly expressed disappointment in the current regulatory landscape.
The regulatory uncertainty and lack of transparency in the world’s economic powerhouse could drive crypto innovations away. Instead of robust rules supporting the growth of the cryptocurrency industry, policymakers tend to enforce threats and restrictive policies.
He argued that viewing cryptocurrencies solely through the lens of individual transactions would risk America’s longstanding role as a global financial leader and an innovation hub. Failing to grasp the transformative nature of cryptocurrencies and blockchain technology could undermine the nation’s position and weaken its national security.
Drawing from history, Armstrong emphasized the role of innovation in currency. Each stage represented a leap forward from the earliest physical coins facilitating commerce to portable paper currency supporting lending and investments.
He stressed that America’s technologically driven financial system in the 20th century played a significant role in establishing the nation’s economic dominance. The status of the U.S. dollar as the global reserve currency has provided numerous benefits regarding soft and hard power.
However, Coinbase’s leader cautioned that the United States now faces a new threat in the form of digital systems promoted by China. Chinese tech giants like Alipay and Tencent are offering integrated payment systems and their expansion through initiatives like the Belt and Road Initiatives.
China’s recent launch of its digital yuan directly challenges the U.S. dollar and its role in global commerce, according to Armstrong. He noted that Hong Kong, among other countries, is positioning itself as a global crypto hub, recognizing the possibilities of cryptocurrencies and blockchain technology.