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Coinbase Rolls Out Bitcoin and ETH Futures for US Investors

Jimmy Aki
Last updated: | 2 min read
Coinbase
Source: Coinbase

Popular cryptocurrency exchange Coinbase has announced the launch of its native Bitcoin and Ethereum futures contracts for US retail traders.

In a November 1 blog post, the US-based Bitcoin trading hub stated that the service is being rolled out via the Coinbase Advanced platform.

Now, retail customers in the US will gain access to regulated crypto futures contracts, all thanks to a previous August regulatory greenlight the exchange received.

In a post from August 17, the exchange announced that the Coinbase Financial Markets (CFM) had been given the go-ahead by the Commodity Futures Trading Commission (CFTC) subsidiary National Futures Association (NFA) to bring regulated cryptocurrency futures contracts to eligible US investors.

Speaking on its target market, Coinbase emphasized that the crypto futures offering is geared towards investors with shallower pockets. This is because each contract comes in small sizes or ‘nano’ forms.

Hence, traders can trade 1/100th of a Bitcoin futures contract and 1/10th of Ethereum contracts.

Providing more context, the crypto platform stated that these nano-sized futures contracts offer lower upfront capital requirements, which makes them affordable investment options for a broader range of retail investors.

To access this new feature, users will have to rely on the Coinbase Advanced web platform, as futures trading is not yet available for mobile devices.

Once they sign in and complete the personal details verification step, they can begin forecasting the price of Bitcoin and Ethereum by selecting either long or short to show their choice.

Additionally, a leverage option will be available, offering investors a potential avenue to enhance their earnings.

However, Coinbase emphasized that leverage can be a double-edged sword, warning that investors may lose their entire deposits if the market moves against them. The exact amount of leverage available to futures traders was not disclosed.

For account settlements, all futures withdrawals will be settled using the USD.

Coinbase Expanding Its European Influence


Coinbase’s recent milestone achievement comes with several losses it has suffered in the domestic scene.

One such is its ongoing battle with the US Securities and Exchange Commission (SEC), which has accused the firm of not meeting the requirements of being a security trading entity.

The platform has refuted the top regulatory body’s claims, stating that its activities do not fall under the agency’s legal purviews.

So far, there is a stalemate in the standoff. This issue has cropped up following a ramp-up of regulatory activities by the SEC in the nascent industry.

To sway regulatory sentiment towards a less hostile clampdown on crypto, Coinbase has organized an online media campaign with the hashtag #standwithcrypto.

So far, the crypto exchange said its campaign has recorded over 16,000 calls and emails forwarded to the US Congress, 100,000 plus crypto advocate signups, as well as $2 million received in donations to support the cause in its first two months.

Meanwhile, the growing regulatory oversight by world governments has not stopped its interest in expanding its global footprint.

According to an October 19 post on X (formerly Twitter), Coinbase is selecting Ireland as its European hub.

Stating the reason behind the decision, the crypto exchange said the regulatory clarity the Markets in Crypto Asset (MiCA) legislation provides has been the deciding factor.