- Coinbase plans to launch Cardano and Natural Gas futures if approved by the CFTC expanding its market offerings.
- ADA futures allow traders to manage risk and trade without holding the asset while NGS futures target the energy sector.
- The SEC delayed its decision on a spot Cardano ETF but regulated futures may improve the chances of future approval.
Coinbase is pursuing regulatory approval to introduce Cardano (ADA) and Natural Gas (NGS) futures contracts. This move would expand its presence in both the cryptocurrency and energy derivatives markets.
Regulatory Submission to the CFTC
Coinbase Derivatives stated it submitted documentation to the Commodities Futures Trading Commission for securing self-certification. The submission enables Coinbase to meet regulatory standards and speeds up the contractual launch unless the CFTC identifies potential issues. The futures contracts aim to begin trading on March 31 following regulatory approval.
Expanding Crypto and Energy Futures Offerings
Coinbase recently introduced Solana and Hedera futures contracts. The addition of ADA and NGS aligns with its strategy to provide access to both digital assets and traditional commodities within a single regulated framework.
Cardano stands as a prominent blockchain platform that boasts excellent security and remarkable scalability features. The adoption of Cardano increases steadily as new decentralized finance and non-fungible tokens emerge. Users who trade ADA futures contracts can control exposure risks and enhance market position without needing direct ownership of the digital asset.
Natural Gas futures mark Coinbase’s entry into energy derivatives. The commodity plays a critical role in global markets, impacting economic stability and energy pricing. With this move, Coinbase positions itself to compete with established futures exchanges in the traditional sector.
Market Reactions and ETF Implications
Following the announcement, ADA saw a 2% increase, reaching $0.75, according to CoinGecko. The launch of regulated futures contracts may also influence the Securities and Exchange Commission’s stance on crypto exchange-traded funds. A structured futures market could provide clearer price discovery, potentially increasing the likelihood of ETF approvals.
Grayscale Investments remains the only firm with a spot Cardano ETF proposal. The filing, submitted through NYSE Arca, aims to list and trade shares of the Grayscale Cardano Trust. Meanwhile, the SEC has postponed its decision on the spot ADA ETF and extended its review period for other crypto ETFs.
