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Coinbase launches institutional-sized Bitcoin and Ether futures contracts

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(Kitco News) - Coinbase has announced that its CFTC-regulated derivatives exchange – Coinbase Derivatives Exchange – will launch institutional Bitcoin (BTC) and Ether (ETH) contracts beginning on June 5.

According to a blog post from Coinbase, since their launch of nano Bitcoin (BIT) and nano Ether (ET) contracts, the exchange has seen a rising level of institutional interest and the demand for advanced derivatives products.

“With the launch of these institutional-sized USD-settled contracts, we look to empower institutional participants with greater precision in managing crypto exposure, expressing directional views, or tracking Bitcoin and Ether returns in a capital-efficient way,” the blog said. “Coinbase Derivatives Exchange is committed to delivering innovative solutions that cater specifically to the needs of institutional investors.”

Coinbase referred to the launch of institutional-sized contracts as the latest milestone in their “ongoing mission to provide accessible and cutting-edge financial instruments to market participants and underscores our dedication to solutions tailored to the needs of institutional clients.”

The new BTI futures will be sized at 1 Bitcoin per contract, while ETI futures will hold 10 Ether per contract. This will “enable participants to tailor their exposure to these growing digital asset commodities with granularity, allowing traders to seize opportunities in a highly dynamic market environment,” Coinbase said.

Along with a greater degree of risk management and “enhanced precision,” Coinbase said the new contracts “offer significantly lower fees than traditional offerings,” which helps institutions maximize their capital efficiency.

“By reducing trading costs, Coinbase Derivatives Exchange aims to create an environment that fosters greater accessibility and participation, ultimately benefiting the entire crypto ecosystem,” the blog said.

Coinbase said it has partnered with leading Futures Commission Merchants, brokers, and front-end providers to help provide support to institutional clients by “enabling seamless access to these futures contracts through their robust trading platforms.”

“Coinbase Derivatives Exchange is committed to fostering a transparent and secure trading environment while providing market participants with the necessary tools to navigate the evolving digital commodity landscape,” the blog concluded.

Coinbase remains dedicated to serving the U.S. despite global expansion

This latest announcement comes as Coinbase has been aggressively expanding its operations, both inside and outside of the U.S., amid a crackdown on digital asset service providers by the U.S. Securities and Exchange Commission.

In early May, the company announced the launch of Coinbase International Exchange, a derivatives exchange based in Bermuda that offers international clients access to Bitcoin and Ether perpetual futures, settled in USD Coin (USDC), with up to 5x leverage.

Last Thursday, the exchange signed a licensing deal with Bitpanda, an Austrian crypto investment business, that will see Coinbase serve as Bitpanda’s liquidity and custody provider and give Coinbase Institutional clients access to Bitpanda’s platform. The new arrangement will allow Coinbase to use Bitpanda Technology Solutions’ business-to-business infrastructure to connect directly with banks and fintechs.

Coinbase has also been active on the community outreach and education front, launching its “Crypto435” pro-crypto advocacy initiative in February to help connect advocates and give crypto a greater voice in the government.

The exchange followed up this initiative with the launch of “Crypto: Moving America Forward,” a national campaign intended to educate the public and explain the role of cryptocurrencies as an underlying technology that will update the global financial system.

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