Coinbase Derivatives Exchange, a CFTC regulated Designated Contract Markets (DCM) futures exchange, will launch its first listed crypto derivatives product on June 27: Nano Bitcoin futures (BIT).
Boris Ilyevsky, Head of Coinbase Derivatives Exchange, said that initially, BIT futures will be available for trading via several leading broker intermediaries, including retail brokers EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate, and clearing firms ABN AMRO, ADMIS, Advantage Futures, ED&F Man, Ironbeam and Wedbush.
“Coinbase is awaiting regulatory approval on its own futures commission merchant (FCM) license so we can offer margined futures contracts directly to our clients,” he said.
Ilyevsky said that transforming FairX into Coinbase Derivatives Exchange married a world-class team with deep expertise across product development, market structure, compliance, market-leading exchange technology and a proven ability to deliver listed futures, with Coinbase’s commitment of building products that are easy-to-understand, fair, accessible, efficient, and transparent.
“Around-the-clock trading, lower upfront investment, leverage and the ease of going long and short are some reasons why futures are a popular product for traders,” he said.
BIT Futures contract will offer the same benefits but is built with the retail trader in mind, explained Ilyevsky.
At 1/100th of the size of a Bitcoin it requires less upfront capital than traditional futures products and creates a real opportunity for significant expansion of retail participation in US regulated crypto futures markets, he said.
“The crypto derivatives market represents $3trn in volume worldwide and we believe that additional product development and accessibility will unlock significant growth,” he said.
“It’s more important than ever to bring the benefits of futures to a broader market so that all types of traders can access regulated U.S. crypto derivatives markets to express their views or hedge their underlying crypto assets,” he added.