[ad_1]
Coinbase Derivatives Exchange, a derivatives platform linked to its namesake cryptocurrency exchange, will introduce Bitcoin and Ether futures contracts for institutional clients on June 5. Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts, measuring 1 Bitcoin and 10 Ether per contract, respectively, will be accessible through institutional third-party Futures Commission Traders (FCM) and brokers, the companies announced on Friday.
Coinbase added that it has witnessed an increase in demand for futures contracts among investors. A futures contract is an agreement that allows investors to buy or sell an asset at a predetermined price at a certain time in the future.
“With the launch of these USD-sized institutional settled contracts, we seek to empower institutional participants with greater precision in managing crypto exposure, expressing an directional view, or tracking BTC and Ether returns in a capital-efficient way,” said the exchange. .
Early May, Coinbase launched a global cryptocurrency derivatives exchange targeting institutional clients based outside the US. After that, the new platform listed Bitcoin and Ether perpetual futures contracts, with trades settled in the stablecoin USD Coin. Unlike futures contracts, perpetual futures contracts do not have specific expiration data.
The launch of the derivatives exchange follows Coinbase’s acquisition of a regulatory license for digital asset exchange services, including token sale and issuance, in Bermuda. The move comes after publicly listed crypto companies signaled to leave the US due to regulatory concerns.
Struggle with Regulators
In March, Coinbase received a Wells Notice from the Securities and Exchange Commission (SEC). The notice stated that the Nasdaq-listed company violated US securities regulations by offering unregistered securities.
In addition, the notice indicates that the SEC may press for further action against the exchange, including a cease-and-desist order or orders. In response to the SEC notification, Coinbase CEO Brian Armstrong blamed the agency for failing to provide proper regulation for the industry.
Nonetheless, the company is expanding its product offerings, recently launching a no-fee subscription model that allows users to trade crypto free of charge with higher reward incentives. Dubbed Coinbase One, the service is launching in 2021 in the US under a beta program and is open to users in the UK, Germany and Ireland.
Coinbase Derivatives Exchange, a derivatives platform linked to its namesake cryptocurrency exchange, will introduce Bitcoin and Ether futures contracts for institutional clients on June 5. Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts, measuring 1 Bitcoin and 10 Ether per contract, respectively, will be accessible through institutional third-party Futures Commission Traders (FCM) and brokers, the companies announced on Friday.
Coinbase added that it has witnessed an increase in demand for futures contracts among investors. A futures contract is an agreement that allows investors to buy or sell an asset at a predetermined price at a certain time in the future.
“With the launch of these USD-sized institutional settled contracts, we seek to empower institutional participants with greater precision in managing crypto exposure, expressing an directional view, or tracking BTC and Ether returns in a capital-efficient way,” said the exchange. .
Early May, Coinbase launched a global cryptocurrency derivatives exchange targeting institutional clients based outside the US. After that, the new platform listed Bitcoin and Ether perpetual futures contracts, with trades settled in the stablecoin USD Coin. Unlike futures contracts, perpetual futures contracts do not have specific expiration data.
The launch of the derivatives exchange follows Coinbase’s acquisition of a regulatory license for digital asset exchange services, including token sale and issuance, in Bermuda. The move comes after publicly listed crypto companies signaled to leave the US due to regulatory issues.
Struggle with Regulators
In March, Coinbase received a Wells Notice from the Securities and Exchange Commission (SEC). The notice stated that the Nasdaq-listed company violated US securities regulations by offering unregistered securities.
Additionally, the notice indicates that the SEC may press for further action against the exchange, including a cease-and-desist order or orders. In response to the SEC notification, Coinbase CEO Brian Armstrong blamed the agency for failing to provide proper regulation for the industry.
Nonetheless, the company is expanding its product offerings, recently launching a no-fee subscription model that allows users to trade crypto free of charge with higher reward incentives. Dubbed Coinbase One, the service is launching in 2021 in the US under a beta program and is open to users in the UK, Germany and Ireland.
[ad_2]
Source link
