San Francisco-based cryptocurrency exchange Coinbase (COIN) has officially introduced cryptocurrency futures trading for eligible customers in the United States, following regulatory approval granted less than three months ago.
In August, Coinbase affiliate Coinbase Financial Markets, Inc. (CFM) secured the green light from the National Futures Association, paving the way for the exchange to offer regulated crypto futures trading to U.S. customers. This marked a significant milestone for Coinbase, positioning it as the inaugural U.S. crypto platform to provide regulated, leveraged futures trading alongside conventional cryptocurrency trading.
In the realm of futures contracts, investors commit to buying or selling a specific asset at a predetermined future date and price. Such contracts empower traders to assume long or short positions on an asset while utilizing leverage, affording them the ability to engage with digital assets while requiring less initial capital.
CFM extends access to bitcoin (BTC) and ether (ETH) via nano-sized futures contracts, representing 1/100th of a bitcoin and 1/10th of an ether, respectively. This approach may foster broader affordability of these assets, appealing to a more extensive range of retail investors.
For U.S.-based traders to partake in these crypto futures contracts, they must hold a Coinbase account and subsequently apply for access to Coinbase Advanced, the associated platform tailored to advanced retail traders. Coinbase customers are required to possess or apply for a Coinbase Advanced account to gain entry into this new offering.
