A prominent crypto exchange, Coinbase, is set to introduce futures trading for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) starting April 1, per Bloomberg ETF analyst James Seyffart.
Despite its initial origins as a meme, Dogecoin’s widespread appeal and community backing have elevated it to a significant player in the crypto world, prompting Coinbase’s move.
Each of the three tokens experienced above-average price gains. As of press time, DOGE rose by 19%, BCH by 18%, and LTC by 6.4%, outperforming the overall crypto market, which increased by 6.2%.Â
The exchange plans to utilize the “self-certification” method, bypassing formal approval from the United States Commodity Futures Trading Commission (CFTC) by adhering to regulatory standards. This strategy allows Coinbase to list the futures contracts on its platform swiftly.
According to Coinbase, Dogecoin’s enduring popularity and strong community support have transformed it from a meme to an integral part of the cryptocurrency landscape.
While some industry observers question the decision, analysts speculate that Coinbase’s move could pressure the Securities and Exchange Commission (SEC) regarding classification issues related to crypto assets using Bitcoin’s proof-of-work consensus mechanism.
This follows Coinbase’s acquisition of the CFTC-regulated FairX derivatives exchange in 2022, aiming to make derivatives trading more accessible to retail customers.
The announcement of futures trading for these cryptocurrencies signals Coinbase’s confidence in their long-term viability and market demand.
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