Coinbase News: Crypto exchange launches Bitcoin and Ether futures for institutions

Coinbase Derivatives Exchange is a CFTC regulated derivatives trading platform. She is now launching bitcoin and ether institutional futures contract trading. In this article, you will learn who the new offer is for and how it could benefit the crypto sector.

Coinbase responds to requests

The June 1 notice says the offer is to come into effect as early as today, June 5. From now on, institutional investors in Bitcoin and Ethereum can also calculate their own risk.

With this offer, Coinbase is responding to the growing demand for cryptocurrencies and alternative investments. Because currently not only private individuals want to invest in Bitcoin and Co. Big companies are also more and more interested in the blockchain.

In the announcement, those responsible describe some of the reasons for the increase:

“Given institutional demand, Coinbase Derivatives Exchange, our CFTC-regulated derivatives exchange, will introduce two new futures contracts that will allow investors to precisely manage risk and seek attractive returns with lower fees than other derivatives exchanges regulated by USA. The Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts will be accessible through institutional futures commission traders (FCMs) and third party brokers.”

Due to the institutional size of the offer, the company should be able to offer very low conditions to investors: “In addition to lower exchange fees, eligible institutions can qualify for various incentive programs if they use the contracts this.”

This should lead to more accuracy and better management of your own crypto concept. At least 1 Bitcoin or 10 Ether should be traded per contract. These lower fees and greater scalability should make it easier for customers to adapt their trading to other digital assets and commodities. This should greatly increase the participation of the institutional sector in the future.

The question now is whether this could even have ramifications for the entire crypto sector. Because if the corresponding demand arises, the prices of the cryptocurrencies could also rise.

Bitcoin and Ethereum are among the most famous coins. They are also often the first point of contact for new investors. However, before entering crypto trading, traders should ask themselves, what is the goal of my investment? In addition to the crypto giants, the sector also offers other promising cryptocurrencies that should not be missing from any 2023 watchlist.

BTC and ETH are not the first experience with institutional clients

The company has already noticed high demand from the institutional sector after the publication of the Nano Bitcoin (BIT) and Nano Ether (ET) contracts. This offer appeared to be a first test with larger customers.

“Since the successful launch of our Nano Bitcoin (BIT) and Nano-Ether (ET) contracts, we have seen institutional interest and demand for advanced derivatives.” For the new offering to be sustainable in nature and resonate with customers accordingly, Coinbase is counting on additional collaboration.

The announcement says, “We have partnered with institutional FCMs, brokers and front-end providers to further support institutional clients and provide seamless access to these futures contracts through their robust trading platforms.”

Therefore the offer of the well-known crypto exchange is being expanded in all directions. The company began working on expansion plans as early as May. The international derivatives exchange opened in Bermuda.

Today Coinbase launched the Coinbase International Exchange @CoinbaseIntExch and will begin offering BTC & ETH perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions outside the UShttps://t.co/OzhbgJlZ2K

— Coinbase 🛡️ (@coinbase) May 2, 2023

Customers have since had access to Bitcoin and Ethereum perpetual futures contracts. You can use leverage effect 5 times.

In addition to the institutional offering, numerous altcoins can also be traded on Coinbase. In our post about DOGE, traders will learn how to buy Dogecoin without registration.

The SEC is also targeting Coinbase

However, the expansion of the offer has been published at a very dubious time. US authorities currently have a tight grip on the crypto sector. The question is whether cryptocurrencies should be traded as securities or not. At the same time, crypto companies are to be penalized for trading in unregulated securities.

Recently, Coinbase was also accused of trading digital assets and not complying with the regulations.

Coinbase responded to the SEC’s threat to file a lawsuit with a public letter. You describe that no constructive speech can be made at the moment.

“Today’s Wells announcement does not contain much information that we can respond to. SEC officials tell us they have identified potential securities law violations. We specifically asked the SEC to identify which assets on our platforms they thought might be securities, and they refused. Today’s Wells announcement also comes after Coinbase submitted multiple registration proposals to the SEC over the months, and the SEC ultimately declined to respond.”

The company has received a lot of support from the community so far. Followers continue to write on Twitter that Coinbase should defend itself against the allegations.

MEME signs are NOT increasing

Coinbase is, after Binance, the most traded crypto exchange. The company was founded by Brian Armstrong in 2012. It currently employs nearly 5,000 people.

According to their own statements, the annual turnover is USD 7.84 billion. Cryptocurrency trading through Coinbase is available in more than 100 countries. Coinbase regularly adds new coins to the portfolio. Investors looking to buy meme coins could soon look forward to a new token on the scene.

Meme coins are very popular. New cryptocurrencies are constantly being released that offer no use case for their users and are still in huge demand. The NO MEME sign has exactly this situation. The coin does not live up to its name. Because here everything revolves around the funny pictures. Buyers of the cryptocurrency have yet to learn or acquire more. Due to the rapid increases in prices over the past few days, however, there may have been high returns at times. Elon Musk also became aware of the special coin and tweeted a picture of the digital currency.

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.