Coinbase Derivatives Exchange to debut BTC and ETH futures for institutional clients on June 5, as per the official announcement.
The newly introduced BTI and ETI futures contracts, valued at 1 bitcoin and 10 ether per contract respectively, will be settled in U.S. dollars on a monthly basis. These futures contracts enable institutional traders to hedge their market positions, express long-term market views, and employ them in sophisticated trading strategies.
Coinbase aims to provide these BTI and ETI futures at significantly lower fees compared to traditional offerings, although the exact fee structure has not been disclosed as of now.
The cryptocurrency derivatives market, while largely unregulated, has gained substantial popularity, with a total notional volume of over $134 billion traded across exchanges in the last 24 hours. Bitcoin and ether-tracked products alone account for more than $25 billion of this trading volume.
At the current market prices, the BTI and ETI futures contracts have a notional value of $30,000 and $20,000 respectively.
By introducing these futures contracts, Coinbase aims to cater to institutional investors seeking exposure to the cryptocurrency market while providing them with efficient tools to manage risk and implement diverse investment strategies.
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