Coinbase, a popular crypto exchange, announced on its website that it will launch Bitcoin and Ethereum futures contracts for institutional investors on June 5. The company will provide access to these products through a CFTC-regulated Coinbase Derivative Exchange and promises lower fees than other US-regulated derivatives exchanges.
BTI and ETI for Institutional Investors
Coinbase has partnered with leading FCMs (Futures Commission Merchants), brokers, and front-end providers to offer institutional clients seamless access to these contracts. According to the statement, the Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts will be accessible through leading third-party institutional futures commission merchants (FCMs) and brokers. To help investors manage their portfolios effectively, BTI and ETI will be available in 1 Bitcoin and 10 Ether contracts. The decision to launch these futures contracts followed the release of nano bitcoin (BIT) and nano Ether (ET) contracts earlier.
“With the launch of these institutional-sized USD-settled contracts, we look to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient way,” Coinbase said.
Coinbase Looking Beyond US
Over the past two months, Coinbase has been exploring friendlier jurisdictions for its entire range of offerings. As part of this endeavor, it secured a license in Bermuda, where crypto regulation has been in place since 2018. Based in Bermuda, the company launched the Coinbase International Exchange for non-US institutional investors, a derivatives exchange offering perpetual futures contracts. Furthermore, Coinbase is believed to be evaluating options in the European Union and the UK for setting up its base. Although Coinbase says it is committed to the US, its disillusionment with the world’s largest crypto market came recently when regulators signaled that they might investigate the company’s staking services, calling them unregulated securities. While Coinbase refuted these claims, the regulatory scrutiny of crypto firms in the US has become more intense in the past few months, especially after FTX’s collapse. Given the prolonged downturn keeping crypto firms under check, big entities like Coinbase must look beyond the US to retain their leadership position in the crypto business.
