- Coinbase has received approval from the CFTC to list crypto futures contracts in the U.S.
- The contracts will be based on Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
- Coinbase plans to launch its crypto futures contracts on September 1, 2023.
After nearly two years of waiting, cryptocurrency exchange Coinbase (COIN) has finally received approval from the Commodity Futures Trading Commission (CFTC) to list crypto futures contracts. This is a major milestone for Coinbase and the cryptocurrency industry as a whole, as it opens up the door for more institutional investors to participate in the market.
Coinbase plans to launch its crypto futures contracts on September 1, 2023. The contracts will be based on Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). Coinbase will initially offer two types of contracts: cash-settled futures and physically-delivered futures.
Cash-settled futures are contracts that are settled in USD at the end of the contract term. Physically-delivered futures are contracts that are settled in the underlying cryptocurrency. Coinbase will only offer physically-delivered futures for BTC at launch.
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The launch of Coinbase’s crypto futures contracts is expected to have a major impact on the cryptocurrency market. It will make it easier for institutional investors to participate in the market, which could lead to increased liquidity and volatility. It could also lead to more mainstream adoption of cryptocurrencies, as institutional investors are seen as a sign of legitimacy.
Benefits of Coinbase’s crypto futures contracts:
- Increased liquidity: Institutional investors will bring much-needed liquidity to the cryptocurrency market. This will make it easier for people to buy and sell cryptocurrencies, which could lead to more volatility.
- Volatility: Volatility can be a good thing for traders, as it creates opportunities to make money. However, it can also be a risk for investors who are not familiar with the market.
- Mainstream adoption: The launch of Coinbase’s crypto futures contracts could lead to more mainstream adoption of cryptocurrencies. As more institutional investors get involved in the market, it will become more legitimate and attract more attention from the general public.
Overall, the launch of Coinbase’s crypto futures contracts is a positive development for the cryptocurrency market. It will make it easier for institutional investors to participate in the market, which could lead to increased liquidity and volatility. It could also lead to more mainstream adoption of cryptocurrencies.
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