Coinbase Derivatives Exchange, a CFTC-regulated platform, is making waves in the cryptocurrency market with the upcoming launch of its institutional-sized Bitcoin and Ether futures contracts.
In an official blog post, Coinbase announced that these new contracts would cater to institutional investors by offering lower fees and greater precision in managing risk.
The move comes as a response to the growing demand for advanced derivatives products within the institutional space. Following the successful launch of nano Bitcoin (BIT) and nano Ether (ET) contracts, Coinbase recognized the need to provide more tailored solutions for institutional participants.
The institutional-sized contracts, denoted as Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures, will be settled in USD and will be available through leading third-party institutional futures commission merchants (FCMs) and brokers.
This strategic partnership aims to facilitate seamless access to these contracts through established and reliable trading platforms.
Coinbase: Empowering Institutional Investors with Tailored Exposure and Granularity
By introducing these contracts, the Derivatives Exchange aims to empower institutional investors with enhanced risk management tools and the ability to express directional views or track the returns of Bitcoin and Ether in a more capital-efficient manner.
Each BTI contract will represent 1 Bitcoin, while each ETI contract will represent 10 Ether, providing participants with the granularity needed to tailor their exposure to these digital asset commodities.
One of the standout features of these institutional-sized contracts is their significantly lower fees compared to traditional offerings.
By reducing trading costs, the company seeks to foster a more accessible and inclusive trading environment, benefiting institutional investors and the wider crypto ecosystem.
Coinbase’s commitment to innovation and customer-centric solutions shines through in this announcement. The company is dedicated to providing market participants with cutting-edge financial instruments tailored to their specific needs.
This focus on customization and accessibility has been a driving force behind Coinbase’s success and its ability to meet the evolving demands of the digital commodity landscape.
However, as the launch of these institutional-sized contracts approaches on June 5, all eyes are on Coinbase Derivatives Exchange.
Market participants eagerly anticipate these contracts’ benefits, including precise risk management, increased capital efficiency, and a more cost-effective trading experience.
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