The former FairX now known as Coinbase Derivative Exchange is planning its first crypto derivatives. The products are said to launch on the 27th of June. It is going to be a nano Bitcoin contract with retailers as its target.
A Brighter Look into the Future
The announcement said that the firm’s BIT Futures aims to give the same benefits as future contracts. The difference here is that it has retailers as its core focus.
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The token is 1/100 the size of one Bitcoin. It, therefore, needs less capital than what obtains with conservative futures. It also provides an actual opportunity for the significant growth of retail involvement.
The US market with regulated crypto futures needs such increased participation from retailers. At first, the contract will be made available to be traded by some top brokers. These brokers include Ironbeam, EdgeClear, Tradovate, Stage 5, NinjaTrader, and Optimus Futures.
Some clearing firms will also be able to provide it for trading as well. These include ADMIS, ED&F Man, ABN AMRO, Advantage Futures, Wedbush, and Ironbeam.
While all these are in motion, Coinbase also seeks to have an FCM license. The Futures Commission Merchant license will help it provide margined products straight to clients. The United States operating license will bring the firm in more direct contact with its clients.
Taking Part in the Crypto Asset’s Futures Market
Coinbase has its place as one of the top crypto exchanges in the US. Its plan to have a crypto derivative came also with its acquisition of FairX. It operates as a Designated Contract Markets Futures exchange through the beginning of this year.
The announcement added that the market around crypto derivatives is worth $3 trillion globally. The firm believes that more product introductions would open the vista to significant growth. The same effect is expected of improved accessibility to users.
There are many crypto trading platforms that provide crypto derivatives. Just a few of them operate in the United States as a result of tough regulations.
The recent announcement came on the tail of the Coinbase Pro shutdown. Coinbase Pro was the professional crypto exchange platform for Coinbase. The crypto exchange is equally battling backlash from its community due to recent layoffs.
The public stock price of Coinbase has gone down significantly since it went public. It, however, gained up by over 13% in the course of the last trading session in the US.