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Coinbase Set to Introduce Bitcoin and Ether Futures Contracts for Institutional Clients on June 5
Well-known cryptocurrency exchange Coinbase is set to introduce Bitcoin and Ethereum futures contracts for institutional investors on June 5, as announced on its website.
The launch will occur via the CFTC-regulated Coinbase Derivative Exchange, which promises reduced fees compared to other US-regulated derivatives platforms.
BTI and ETI for Institutional Investors
Coinbase has collaborated with prominent FCMs (Futures Commission Merchants), brokers, and front-end providers to facilitate seamless access to these contracts for institutional clients.
“The Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts will be available through leading third-party institutional futures commission merchants (FCMs) and brokers,” the announcement stated.
To assist investors in effectively managing their portfolios, BTI and ETI will be offered in contracts of 1 Bitcoin and 10 Ether.
The initiative to introduce these futures contracts follows the earlier launch of nano bitcoin (BIT) and nano Ether (ET) contracts.
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“With the introduction of these institutional-sized USD-settled contracts, we aim to empower institutional participants with enhanced precision in managing crypto exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient manner,” Coinbase stated.
Coinbase Looking Beyond US
In recent months, Coinbase has been in the spotlight for seeking more favorable jurisdictions for its complete range of offerings. As part of this strategy, it obtained a license in Bermuda, where cryptocurrency regulation has been established since 2018.
Operating from Bermuda, the company launched the Coinbase International Exchange for non-US institutional investors, a derivatives exchange that provides perpetual futures contracts. Additionally, Coinbase is reportedly assessing options within the European Union and the UK for establishing its base.
While Coinbase asserts its commitment to the US, its growing discontent with the largest crypto market surfaced recently when regulators indicated they might investigate the company’s staking services, labeling them as unregulated securities.
Although Coinbase has denied these allegations, the regulatory scrutiny of cryptocurrency firms in the US has intensified in recent months, particularly following the collapse of FTX. With the ongoing downturn keeping crypto firms under scrutiny, major entities like Coinbase must explore opportunities beyond the US to maintain their leadership in the cryptocurrency sector.
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