This month, Coinbase Derivatives Exchange, formerly FairX, will introduce its first cryptocurrency derivatives product to draw in more retail traders. To introduce cryptocurrency derivatives products, Coinbase, earlier this year, purchased FairX. After getting regulatory clearances in late 2020, FairX started its futures exchange platform in May 2021. Coinbase Derivatives Exchange announced in a blog post on Thursday that it would “launch its first listed crypto derivatives product on June 27, 2022: Nano Bitcoin futures contract (BIT), with each contract sized at 1/100th of a bitcoin.” USD-Settled Index Future According to a notification on the Coinbase Derivatives website, the initial offering is a USD-settled index future. The fact that brokerages rather than Coinbase itself will offer the futures is crucial to the launch. The debut coincides with a period of extreme market volatility brought on by the catastrophic failures of Terra’s LUNA. Cryptocurrency lender Celsius and cryptocurrency fund Three Arrows Capital (3AC). This year, Bitcoin’s price decreased by about 56%, while the cost of ether, the native token of Ethereum, has reduced by about 70%. To directly provide margined futures contracts to our clients, Coinbase is seeking regulatory clearance on its own futures commission merchant (FCM) license, according to the post. Participation of Retailers Futures contracts can be used as a hedge for trading techniques by inst...
