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Coinbase to Launch 2nd Crypto Derivatives Product-Nano Ether Futures for Retail Brokers

Annie Li   Aug 26, 2022 06:50 2 Min Read


   

Coinbase Derivatives Exchange (formerly FairX) will launch its second crypto derivatives product, Nano Ether Futures Contracts (ET), on August 29.

Coinbase said the BIT would initially target several leading brokerage intermediaries, including retail brokerages EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate, as well as clearing firms ABN AMRO, ADMIS, Advantage Futures, ED&F Man, Ironbeam and Wedbush.

Coinbase Derivatives Exchange launched its first crypto derivatives product, Nano Bitcoin futures (BIT), on June 27.

As of August 24, 2.9MM contracts have been traded in the Nano Bitcoin Futures Contract (BIT), averaging 77,000 contracts per day.

Coinbase is currently awaiting regulatory approval for a Futures Commission Merchant (FCM) license. After obtaining the FCM license, the company can offer margin futures contracts directly to clients.

Coinbase Derivatives Exchange is a CFTC-regulated Designated Contract Market (DCM) futures exchange.

FairX launched its futures exchange platform in May 2021 and was acquired by Coinbase earlier in 2022 to launch crypto derivatives products.

Boris Ilyevsky, head of Coinbase derivatives exchange, said that:

"While still in its early stages, we believe that product innovation and an accessible entry point for the retail market have contributed to its success."

The company said the contract is equivalent to 1/10 the time of ether, requiring less upfront capital for retail investors, allowing participants to easily long or short the price of ether and in volatile markets to manage risk.

Although the product launch comes at a time of heightened volatility in the cryptocurrency market, Coinbase cited a Financial Times report that the global crypto derivatives market is worth $3 trillion.

The cryptocurrency market was going through a downturn. In addition, the price of bitcoin has fallen about 56% this year, and ether, Ethereum's native token, was down about 70%.

According to Blockchain.News, Coinbase Prime, a comprehensive solution that provides secure custody, an advanced trading platform and Prime services, has launched an Ethereum staking service for U.S. corporate customers, offering businesses a way to gain passive access to risk aversion. opportunity for profit.


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