Popular crypto exchange Coinbase will launch Bitcoin and Ethereum futures contracts for institutional investors on June 5, the company said on its website.
The company will launch these products through CFTC-regulated Coinbase Derivative Exchange, promising 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 enable institutional clients seamless access to these contracts.
“The Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures contracts will be accessible through leading third-party institutional futures commission merchants (FCMs) and brokers,” the statement said.
To help investors manage their portfolios effectively, BTI and ETI will be available in 1 Bitcoin and 10 Ether contracts.
“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 was in the news for exploring friendlier jurisdictions for its entire range of offerings. As part of this endeavor, it secured a license in Bermuda, where a 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 evaluate options in European Union and the UK for setting its base.
Although Coinbase says it’s committed to the US, its disillusionment with the world’s largest crypto market came recently when the regulators signaled that they might investigate the company’s staking services, calling them unregulated securities.
While Coinbase has 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. With 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.
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