Coinbase Advanced Opens Access to Regulated Crypto Futures for US Retail Traders
Summary:
Coinbase Advanced enables US retail traders to trade regulated crypto futures contracts, four months after Coinbase Financial Markets secured regulatory approval. Traders can now deal in nano-sized futures contracts, equivalent to 1/100th of a Bitcoin and 1/10th of an Ether. A decline in spot trading volume compared to 2022 was a factor for introducing this service. Users will also have access to educational content through Coinbase Learn. The service is currently web-based and will soon expand to mobile devices.
Coinbase Advanced is making crypt futures contracts accessible to retail traders in the US, a service made possible four months after Coinbase Financial Markets (CFM) was permitted to run a Futures Commission Merchant (FCM) operation. CFM had successfully obtained regulatory authorization from the National Futures Association (NFA), which acts as a self-regulatory organization appointed by the Commodity Futures Trading Commission, on August 17. This authorization granted CFM the ability to open an FCM and provide crypto futures services to all eligible traders based in the US. Delving deeper into the details shared with Cointelegraph, CFM declared that Coinbase Advanced patrons in the US could engage in trading nano-sized futures contracts, which equal 1/100th of 1 Bitcoin (BTC) and 1/10th of 1 Ether (ETH). Andrew Sears, CFM's CEO illustrated, “These contracts signify lower initial capital commitments, thus they could serve as an economical investment solution for a more extensive range of retail clients.” The nano-Ether contract gives dealers the ability to control risk, enforce margin trading or predict the price of Ether, while the nano-Bitcoin contract lets users have a say on BTC's future price. Governors of regulated, leveraged, and cash-settled crypto futures will also have the privilege to access a collection of educational materials via Coinbase Learn. Any US citizen with an existing active Coinbase account for spot trading can open an FCM futures account. This service is operational on the web platform and will soon be introduced on mobile devices. Coinbase's choice of introducing crypto futures services seems a logical progression, considering the downturn in spot trading volume witnessed over the year compared to 2022. CCData, a digital asset data provider, revealed that Coinbase had recorded a spot trading volume of roughly $76 billion—an enormous 52% drop in Q3 2023 spot trading compared to the same time-frame in 2022. Regardless of dwindling spot trading volumes, Coinbase has enhanced its market share in the last quarter, even as crypto exchange Binance faced mounting regulatory pressure. The attached magazine article relates the extraordinary path-from-rags-to-riches story of Sandeep Nailwal, Polygon's creator.
Published At
11/1/2023 1:00:00 PM
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