Coinbase Brings Regulated Crypto Futures to US Traders

Coinbase Financial Markets (CFM) has taken a significant step in expanding the accessibility of crypto futures for retail traders in the United States. This development comes four months after CFM obtained regulatory approval to operate as a Futures Commission Merchant (FCM). Now, Coinbase Advanced customers in the U.S. have the opportunity to engage in regulated crypto futures trading.

The newly introduced futures contracts are designed with retail traders in mind, offering a unique size – 1/100th of a Bitcoin and 1/10th of an Ethereum. This sizing not only lowers the upfront capital requirements but also provides a more affordable investment option for a broader range of retail customers. The ability to go long and short in futures contracts empowers traders to manage risk on their underlying crypto assets and trade with leverage, allowing access to the crypto market with reduced upfront investment.

CFM’s commitment to making futures trading more accessible extends beyond contract sizes. They have also put emphasis on education, providing a library of educational content through Coinbase Learn. This resource aims to equip traders with a comprehensive understanding of futures, from the basics to the associated benefits and risks, ensuring that traders are informed and can engage in futures trading responsibly.

To get started, U.S. traders can access crypto futures contracts through Coinbase Advanced, a platform tailored for sophisticated retail traders. This platform offers an array of powerful tools, including advanced order types, TradingView charts, and APIs for automated trading. Before setting up a CFM futures account, eligible traders are required to have an existing account on Coinbase Inc. for spot trading. All futures contracts will be settled in USD.

Coinbase’s foray into crypto futures trading aligns with their commitment to operate as a regulated and compliant business. Despite regulatory challenges, the company continues to expand its offerings to cater to a broader customer base.

As Coinbase launches its regulated crypto futures services, the exchange has observed a decline in spot trading volume this year compared to the previous year. This shift highlights the growing importance of crypto derivatives and the desire to offer diversified trading options to the market.