Coinbase has submitted applications to the CFTC seeking approval to launch futures trading on Dogecoin [DOGE], Litecoin [LTC], and Bitcoin Cash [BCH] on April 1. Surprisingly, the submissions made on March 7 went unnoticed. A total of three letters were sent addressing Christopher J. Kirkpatrick, Secretary of the Commission.
The futures contracts are set to begin trading by April 1. If approved by the CFTC, these contracts will offer investors new opportunities to engage with these popular cryptocurrencies in a regulated environment. Moreover, the crypto exchange is leveraging self-certification with the U.S. CFTC to quickly list and ensure compliance. All three cryptocurrencies are derived from Bitcoin and are considered commodities by the SEC.
Delving into the specifics, the Dogecoin Futures contract, in particular, would be a monthly cash-settled and margined contract. Each contract will represent 5,000 Dogecoin [DOGE], with a nominal value of roughly $600. The contract code will be ‘DOG’, and trading will be based on the Market Vector Coinbase Dogecoin Benchmark Rate Index.
The letter has specified the metric that will determine the daily settlement of the Dogecoin Futures contract, with the final settlement occurring at 4:00 PM London time. Regarding position limits, the Exchange has set a contract limit of 20,000 DOG futures contracts, starting from 25 contracts, to ensure market integrity and prevent market disruption.
Dogecoin: No More a Meme Coin?
The integration of Dogecoin has sparked excitement among the crypto community. Created in December 2013, the OG meme coin quickly gained prominence and expanded its reach in the mainstream realm. Besides online tipping and charitable contributions, DOGE received massive institutional support. Currently, it is the biggest meme coin by market cap, with over 140 billion tokens in circulation.
Coinbase Derivatives LLC’s move to list Dogecoin futures reflects growing interest and demand for regulated cryptocurrency products.
Doge to a dollar isn’t going to be just a meme this cycle
Following the news, DOGE, currently valued at $0.15, posted the highest daily gain, surging by over 13%, reigniting discussions that the elusive $1 milestone is not just a dream but a realistic possibility within the current market cycle.