Coinbase Launches US Perpetual Futures July 21
Coinbase Derivatives, a branch of the crypto platform Coinbase, is set to start trading US perpetual-style futures for Bitcoin and Ethereum on July 21. These contracts, designed at 0.01 BTC and 0.10 ETH respectively, come with 5-year expirations and can be traded 24/7. They aim to closely follow spot market trends on Coinbase's regulated systems. This move provides a secure and regulated alternative to offshore exchanges often used by traders which pose various risks. Boris Ilyevsky, Head of Coinbase Derivatives Exchange, emphasizes the domestic and regulated advantage of these new contracts, enhancing capital efficiency and risk management. Previously, Coinbase acquired Deribit, a crypto derivatives exchange, indicating its serious venture into derivatives markets. In May, Ethereum futures hit their second-highest trading volume at $1.7 trillion. The Block, reporting on this, maintains editorial independence despite its connections with Foresight Ventures.
FAQ
❓ What are perpetual-style futures?
Perpetual-style futures are contracts without a set expiration date, allowing continuous trading and better alignment with spot markets.
❓ Why are US-based perpetual futures significant?
They offer a regulated, domestic alternative to offshore markets, providing more secure trading without additional risks.
❓ How do these contracts benefit traders?
They simplify expirations, enhance capital efficiency, allow strategic planning, and improve risk management.