Coinbase launches Bitcoin and Ethereum futures trading for U.S. retail customers

According to a report from The Block, Coinbase has launched regulated leveraged cryptocurrency futures for its U.S. customers starting from November and made it available to Coinbase Advanced users. The trading platform currently offers Nano contracts, priced at just one percent of Bitcoin and one-tenth of Ethereum, designed specifically for retail traders.

Coinbase Becomes a Qualified Futures Broker in the United States

The leading U.S. exchange Coinbase, which has long been plagued by SEC regulatory issues, has obtained approval from the National Futures Association (NFA) under the Commodity Futures Trading Commission (CFTC) in August to become a qualified broker, allowing it to provide cryptocurrency futures trading services to U.S. users. According to previous reports, Coinbase submitted an application to the NFA to register as a futures broker in September 2021 and acquired the futures exchange FairX, which is regulated by the CFTC, in 2022. FairX is currently known as Coinbase Derivatives Exchange and is currently open to third-party brokers, futures brokers, and market makers, with a deep liquidity pool established.

The Coinbase Derivatives Exchange currently offers Bitcoin futures, as well as Nano versions, Ethereum futures, as well as Nano versions, crude oil futures, and Bloomberg U.S. Large Cap Index futures. Only the Nano versions of Bitcoin and Ethereum futures are available for retail trading.

Nano Futures Significantly Reduce the Entry Barrier for Retail Investors

Facing regulatory uncertainties in the United States and lawsuits from the SEC, Coinbase has been actively expanding overseas. In June, it launched an offshore derivatives exchange in Bermuda.

However, the introduction of futures products this time finally allows U.S. customers to participate, specifically targeting retail customers!

Coinbase's Bitcoin Nano Futures are cash-settled futures contracts that settle monthly, allowing participants to manage risks, engage in margin trading, or predict Bitcoin price trends. Each contract represents one-hundredth of a Bitcoin, significantly lowering the entry barrier.

Ethereum Nano Futures have similar specifications, but each contract represents one-tenth of an Ether.