Coinbase Financial Markets (CFM) introduced regulated leveraged crypto futures for its U.S. customers Wednesday, now available to Coinbase Advanced users. The trading platform currently offers nano-sized contracts at one-hundredth of a bitcoin and one-tenth of an ethereum.
Coinbase Financial Markets Rolls Out Crypto Futures for U.S. Investors
The San Francisco-based crypto platform, Coinbase, is beginning to gradually introduce its bitcoin and ethereum futures offerings. CFM’s goal is to “make futures more accessible to retail crypto traders,” according to the announcement Wednesday. With the launch, Coinbase Advanced customers in the U.S. can now access the regulated crypto futures contracts
Coinbase explains that futures derivatives products allow traders to hedge risk and diversify. “Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount,” the announcement discloses.
The exchange added:
These futures contracts are specifically sized for retail traders, at 1/100th of a bitcoin and 1/10th of an ethereum.
The company further explained that CFM’s approval to offer federally regulated crypto futures trading in August marked a critical milestone, signaling significant progress in the crypto trading domain. Coinbase also noted the pivotal role of education in CFM’s strategy, providing a suite of articles for traders covering a range of topics, from the basics of futures trading to the associated benefits and risks.
The firm’s stock (Nasdaq: COIN) is up 0.48% for the month and 58% over the past six months. Year-to-date, COIN has gained 111% against the U.S. dollar. Customers not using Coinbase Advanced can apply to trade futures with CFM, provided they pass the anti-money laundering/know-your-customer (AML/KYC) and verification processes.
What do you think about Coinbase introducing its futures crypto products to U.S. traders? Share your thoughts and opinions about this subject in the comments section below.