Coinbase Files with CFTC to Launch Regulated Futures for AVAX, LINK, DOT, XLM, and SHIB

Highlights:

Coinbase seeks CFTC approval for future products tied to DOT, SHIB, XLM, AVAX, and LINK.
These additions aim to enhance trading options and attract institutional investors.
The products are scheduled to begin trading on or after July 15.

Crypto exchange giant Coinbase filed for regulatory approval to add margined futures contracts related to popular altcoins to its derivatives exchange. On June 28, Coinbase submitted five new filings of futures products tied to Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), Stellar (XLM), and Shiba Inu (SHIB) with the Commodity Futures Trading Commission (CFTC), according to the firm’s website.

The exchange scheduled the products’ trading date for on or after July 15. The company said it is the first United States futures exchange to provide margined futures contracts for each token and is “excited to lead market accessibility.”

BREAKING: Coinbase Derivatives Files with CFTC to List Regulated Futures for $SHIB, $LINK, $AVAX, $XLM, and $DOT

Coinbase Derivatives has officially filed certifications with the CFTC to offer US-regulated futures for SHIB, LINK, AVAX, XLM, and DOT.

Bullish behavior.

— Kyle Chassé (@kyle_chasse) June 28, 2024

Coinbase’s Expansion and Regulatory Compliance

Coinbase Derivatives is taking a positive step by expanding its trading and investment offerings. The firm stated that these contracts will enable participants to manage risk and speculate on price movements. They also allow investors to enter the crypto market with lower upfront capital requirements, all under CFTC supervision.

Furthermore, Coinbase’s collaboration with Nodal Clear, Futures Commission Merchants (FCMs), and retail brokers ensures a secure trading environment for investors. This partnership demonstrates the exchange’s dedication to adhering to ICC principles in its operations.

Coinbase noted:

“With the addition of AVA, LNK, DOT, XLM, and SHB, our participants and their clients gain more access points to manage risk, speculate on price movements and participate in the cryptoeconomy with reduced upfront capital requirements. This expansion not only diversifies our product suite but can also enhance our users’ overall trading experience.”

Coinbase Derivatives Traded $34M

According to CoinGecko data, on June 29, Coinbase Derivatives had $34.7 million in 24-hour open interest. The trading volume for the same period was $928.3 million. The service already offers various contracts, including Ethereum (ETH) and Bitcoin (BTC) futures, BTC nano futures, and ETH nano futures. In April, it added futures for Bitcoin Cash (BCH), Dogecoin (DOGE), and Litecoin (LTC). Moreover, it provides contracts for crude oil and gold.

Coinbase Derivatives has become the first CFTC-regulated futures exchange to offer margined BCH and LTC futures. DOGE futures are set to launch on April 29. Read more about it 👇 https://t.co/nsZberkzDe

— Coinbase Institutional 🛡️ (@CoinbaseInsto) April 11, 2024

Tokens Price Movements Amid Market Trends

The altcoins didn’t see much price change from the news and have mostly been following the broader market’s downward trend. As of press time, LINK was trading at $13.97, down 2.10% over the past 24 hours. XLM was down 0.46% and trading at $0.0913 per token, while DOT was down 0.5% to $6.21 per token. Meanwhile, AVAX was up 1.66%, trading at $28.58, while SHIB gained 7.1%, trading at $0.00001 as of press time

Among the five tokens, AVAX boasts the largest market capitalization, standing at $11.1 billion. In contrast, SHIB, with its lower price point, remains a popular choice among investors, ranking second in market capitalization among the five tokens at $10.1 billion.

Market Impact and Future Outlook of Coinbase’s Innovations

Coinbase is leading the market as the first US futures exchange to offer these margined futures contracts. This comes at a crucial time when investors are looking for new, regulated trading options.

Adding these altcoins to Coinbase’s futures offerings may boost market liquidity and stabilize price movements, which could benefit the broader crypto trading community. As the market awaits this rollout, attention is on how these derivatives will perform under regulation, setting the stage for future expansions in similar financial instruments.