By
Bena Ilyas
April 22nd, 2024
Coinbase is launching its second derivatives product – the nano ether ETH futures on its derivatives exchange in the coming week.
In its continuous strive to build a competitively accessible futures market, Coinbase exchange is set to add its second derivatives product in the coming week.
As confirmed via a Thursday blog post by the firm, the Nano Ether futures contract (ET) will launch on August 29.
Coinbase ETH Futures Contract
The nano ETH futures share some similarities with the nano Bitcoin (BTC) futures that the firm rolled out on June 27. But each contract is a 10% fraction of an ETH token as opposed to the name BTC which has a 1% fraction of a BTC token. However, traders now have an opportunity to trade the price of a popular asset as ETH, with less amount of capital than traditional futures products.
Also, there is hope that the contract will record similar success as seen with the BTC contract. Over the last 30 days, the BTC contract sees an average of 77,000 contracts on daily basis.
But just as with the BTC contract, the Nano Ether futures will be available for trading via brokers like EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate. They will also be available via clearing firms such as Advantage Futures, ABN AMRO, Dorman Trading, ADMIS, ED&F Man, Ironbeam and Wedbush.
Coinbase Keen on the Derivatives Market
For Coinbase, it has been a constant push for the derivatives market since the start of the year. It started off the year by acquiring derivatives market FairX, which is regulated by the Commodity Futures Trading Commission (CFTC).
All along, the plans of Coinbase are centered around breaking into the United States crypto derivatives market scene. But its broader ambitions have been somewhat limited, owing to its dependence on getting approval from US authorities. And that was duly pointed out in the blog post. Part of the statement read:
“Coinbase Financial Markets is awaiting approval for its license to operate a futures commission merchant (“FCM”) to offer futures directly to our clients.”
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