Coinbase’s “global expansion strategy” has reaped rich dividends after the Bermuda-based futures exchange reached roughly $2 billion in volumes during the month of July, data from The Block revealed. Notably, the offshore wing was launched in May with two contracts: bitcoin and ether perpetual futures.
But only $1.963 billion worth of volume was traded across the two contracts, according to Coinbase International, indicating a gradual fall throughout the month. Nevertheless, the exchange’s new venture only makes up a small portion of the larger crypto futures market. The new market is still in its infancy, and it may take some time to attract new customers from other exchanges and increase liquidity.
When compared to its closest competitors, CME Group’s ether futures contract saw volumes of $64.3 million in the first month it traded in 2021, according to information from The Block. The ether contract offered by Coinbase International witnessed monthly volumes of $770 million in July.
The exchange is set to announce its second-quarter financial results on August 3. Last quarter, the firm’s revenue plunged due to a significant drop in trading volumes amid crypto regulatory crackdowns in the US.
In contrast, its Q1 2023 financial results easily exceeded investor expectations. The U.S. crypto exchange generated net revenues of $736 million, a net loss of $79 million, and adjusted EBITDA of $284 million in the first three months of the year. Numerous publications claim that analysts had anticipated a first-quarter loss for the corporation and a much smaller $655 million in revenue.
Coinbase Key Deadlines
Following the recent issuance of a scheduling order by Judge Failla that set significant deadlines for each party, the legal dispute between Coinbase and the SEC is about to approach a crucial stage. Coinbase’s chief legal officer, Paul Grewal, highlighted their importance on Twitter.
One of them required the exchange’s legal briefs to be submitted by August 4, 2023, and supporting briefs to be presented within certain timelines, impacting the case.
Other parties with an interest will have until August 11 to submit Amicus Curiae briefs in support of Coinbase’s move for judgment on the pleadings. On or before October 3, the SEC will submit its legal brief against Coinbase, including its own defenses and supporting evidence. The exchange’s deadline for submitting a brief in response to the SEC’s filing is October 24.