Coinbase launches institutional-sized bitcoin and ether futures

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The derivatives arm of US crypto exchange Coinbase will offer institutional-sized bitcoin (BTC) and ether (ETH) tracked futures contracts for institutional clients from June 5.

Coinbase Derivatives Exchange said these futures contracts are specifically designed to meet growing institutional demand in the market, building on the success of its previously issued nano Bitcoin (BIT) and nano Ether (ETI) contracts introduced last year. last year.

With the launch of these new futures offerings, Coinbase aims to further expand its institutional services and provide additional investment options to its customer base.

The major cryptocurrency exchange clarified that BTI (Bitcoin Tracked Index) and ETI (Ether Tracked Index) futures are structured to represent 1 BTC and 10 ETH respectively per contract. Based on current prices, the notional value of the BTI contract is approximately $30,000, while the ETI contract has a notional value of approximately $20,000.

Coinbase added that BTC and ETI futures are available at “significantly lower fees” compared to traditional offerings. However, the exact fees for these contracts were not disclosed.

Settled in US dollars, on a monthly basis, these contracts allow professional investors to hedge their positions in the market, express long-term views on the market, or use them as components of more complex trading strategies.

Derivatives, in the context of finance, are contractual arrangements that derive their value from an underlying asset. In the cryptocurrency space, the derivatives market involves traders buying contracts based on predicted future price movements of digital assets. With these futures contracts, traders can participate in the price movements of Bitcoin and Ethereum, allowing them to potentially profit from their predictions about the future value of these cryptocurrencies.

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