TLDR
- Coinbase Derivatives is shaking up the US crypto landscape by introducing the first CFTC-approved Bitcoin and Ethereum futures market that never sleeps.
- In addition, the company is blazing a trail by crafting a new type of futures contract that lacks the usual expiration deadline, allowing for endless trading opportunities.
- US traders currently face the hurdle of set trading hours, limiting them compared to their global counterparts who enjoy unrestricted market access.
- The realm of crypto derivatives commands a significant portion, approximately three-quarters, of the entire crypto trading volume.
- This strategic move brings US markets closer to international norms, fulfilling a long-standing demand from native crypto enthusiasts.
Coinbase Derivatives, LLC poised to offer seamless, round-the-clock futures trading for Bitcoin and Ethereum with CFTC regulation across the US.
This initiative empowers US traders to engage in crypto futures without the headache of market closures, mirroring the perpetual accessibility of traditional cryptocurrency markets.
With preset hours, US futures traders find themselves stalled during pivotal market changes, highlighting the disparity between US and international trading capabilities.
Greg Tusar, the Institutional Product VP at Coinbase, shed light on the launch's motivation, stressing the necessity for traders to navigate risks and seize market moments in real-time.
There’s a compelling surge in demand from US customers deeply rooted in the crypto culture, who have been at a disadvantage compared to their international peers.
This round-the-clock futures option will cater to a wide array of traders with different contract sizes, aligning perfectly with distinct trading plans for both individual investors and big trading firms.
In a strategic partnership, Coinbase linked with Nodal Clear to provide CFTC-cleared trading services, with Coinbase Financial Markets offering access right from the outset.
Perpetual Futures
Coinbase is on the forefront of innovation, crafting a new futures contract model that does away with the traditional expiration confines.
This gives traders the freedom to hold their positions indefinitely, no longer pressed by contract expirations.
The new perpetual futures are designed to reflect the dynamic nature of the global market while strictly adhering to US regulatory demands.
The team at Coinbase has maintained continuous dialogue with the CFTC, working closely with various industry players to perfect the product's framework.
Derivatives Market
Dominating around 75% of crypto trading, the derivatives market is enormous, with insights projecting its leap from $1.5 billion in 2024 to a staggering $5 billion come 2032.
Until now, much of the extensive trading landscape rested in the hands of offshore entities like Binance, offering services outside the reach of US regulations.
Recent incidents underscore the inadequacies of rigid trading hours, as seen when Trump’s Sunday announcement about a US Crypto Reserve jolted the spot traders into action, while futures traders were left waiting until markets reopened.
The push towards perpetual markets is evident as more financial arenas gravitate towards extended trading sessions, with Nasdaq being a notable example in its 2026 plan.
Nasdaq Trading Hours
Tal Cohen, President of Nasdaq, heralded a future where Nasdaq aims to embrace extended trading, engaging critical stakeholders to facilitate near-continuous trading days.
Vlad Tenev, CEO of Robinhood, emphasized the revolutionary nature of blockchain, enabling relentless trading, spotlighting tokenization as a key enabler of such possibilities.
Increased trading activity has already been observed in markets like the Taiwan Stock Exchange following the implementation of extended trading times.
Coinbase perceives these advancements as a part of a significant shift within the US, inviting pivotal figures and institutions to leap into the new era of crypto derivatives.
In the words of the Editor-in-Chief of Blockonomi, merging insights with open-source software and a belief in blockchain, the written pieces have echoed across noteworthy outlets such as Nasdaq and Forbes.
Several prestigious platforms acknowledge his work, including Nasdaq, Dow Jones, Investopedia, The New Yorker, and more. For inquiries, reach out to Oliver@level-up-casino-app.com.
