Coinbase Derivatives Exchange Offers Nano Bitcoin Futures
Coinbase Derivatives Exchange, a futures exchange regulated under CFTC, will introduce its earliest listed product of crypto derivatives named Nano Bitcoin futures on 27th June. At first, the availability of BIT futures can only be done through the trade of some prominent broker intermediaries, taking into account the 3rd party retail brokers such as Wedbush, Ironbeam, ED&F Man, Advantage Futures, ADMIS, and ABN AMRO.
FairX Rebrands to Coinbase Derivatives Exchange and Takes New Initiatives
Coinbase is expecting to have regulatory approval on the futures commission merchant (FCM) license thereof to offer restricted futures contracts straight to their consumers. While rebranding from FairX to Coinbase Derivatives Exchange, the platform incorporated an outstanding group that has great expertise regarding product development, an exchange technology to lead the market, adequate compliance, as well as a proven capability to offer listed futures.
Coinbase Derivatives Exchange head, Boris Ilyevsky, mentioned in his statement that Coinbase is committed to developing transparent, efficient, accessible, fair, as well as easily comprehendible products. In his words, the reasons for the popularity of the futures in the crypto market include the leverage provided by them as well as the convenience of going short and long. In addition to the customer-friendly interface of Coinbase, the focus of the derivatives exchange is on expanding the accessibility area of the crypto derivatives trading.
With Growing Interest in Futures, The Exchange Awaits Approval for FCM License
Futures are considered to be a form of derivative financial product, with which a price and date can be specified on which the specific asset will necessarily be sold, without bothering about the real market price at the respective time. In October, when the exchange was permitted by the SEC to release a Bitcoin ETF, it was only allowed to offer Bitcoin futures ETF and not a spot ETF which is tied to the present price of Bitcoin.
According to Ilyevsky, several traders – who intend to trade around the clock with lower investment – prefer to trade futures trading. The head added that the BIT futures contract of Coinbase will also provide these advantages but it is designed according to the needs of retail traders.
The reason why the crypto exchange cannot offer the above-mentioned futures directly is that it has not yet been given a regulatory clearance on having its futures commission merchant (FCM) license. Though the general crypto market capitalization has contracted during the previous days, Ilyevsky opines that improved accessibility, as well as more product development, are the things through which a massive advancement can be unlocked.
