Coinbase Expands Futures Trading with CFTC-Regulated Altcoins Including LINK, DOT, and SHIB

July 1, 2024 at 04:31 PM GST 2 mins read News

Coinbase expands Futures trading with 5 CFTC-regulated altcoins
The altcoins include Avalanche, Chainlink, Polkadot, Stellar, and Shiba Inu.
Coinbase’s commitment to regulated offerings expands the crypto derivatives market.

Coinbase has applied for the listing of new futures products tied to five top crypto assets. As the post below suggests, these futures contracts will go live on or after July 15th.

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Exciting news for SHIB traders! Coinbase Derivatives announces launch of SHIB Futures on July 15, offering a regulated platform for trading. Contracts will be cash-settled and margined, with a contract size of 10 million SHIB. Price set at $0.00001 per token. Get ready for new… pic.twitter.com/OKMqXs620E
— Collin Brown (@CollinBrownXRP) July 1, 2024

The selected altcoins for the CFTC-regulated futures contracts include Avalanche (AVA), Chainlink (LNK), Polkadot (DOT), Stellar (XLM), and Shiba Inu (SHB). Coinbase Derivatives aims to be the first Futures Exchange in the United States to introduce CFTC-regulated margin futures contracts for altcoins.

Futures trading offers several benefits, including effective risk management and hedging against price fluctuations. Traders can leverage positions for potentially higher returns with smaller investments.

Moreover, it enhances investment strategies and reduces overall risk. The market’s high liquidity ensures easy entry and exit from trades. Additionally, regulation and transparency in futures trading ensure fair pricing and reduce the risk of market manipulation.

CFTC-regulated margin futures contracts provide more access points to manage risk, speculate on price movements, and participate in the crypto economy with minimal upfront capital. This development comes after Coinbase Derivatives recently launched commodities futures contracts for oil and gold.

Coinbase Thrives Amid Legal Hurdles

The Securities and Exchange Commission charged Coinbase for operating as an unregistered national securities exchange, broker, and clearing agency. While the SEC’s claim that Coinbase engaged in unregistered sales of securities will be heard by a jury at trial, the exchange remains resilient.

Coinbase’s move to expand its derivatives market reflects the growing interest in crypto derivatives. As the crypto market continues to evolve, Coinbase’s commitment to regulated offerings ensures a safer and more accessible trading environment for investors.