In response to the increasing demand from institutional investors, Coinbase Derivatives Exchange has announced the launch of institutional-sized Bitcoin and Ether futures contracts. Coinbase, as a CFTC-regulated derivatives exchange, is seeking to provide investors with reliable risk management tools and attractive returns while charging lower costs than other US-regulated derivatives exchanges.
The newly announced futures contracts, Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) are being made available through third-party institutional futures commission merchants (FCMs) and brokers. These contracts allow institutional investors to more efficiently manage their exposure to cryptocurrencies, express their directional views, and track the performance of Bitcoin and Ether in a capital-efficient way.
The unit sizes of the BTI and ETI futures contracts will be one Bitcoin and ten ether, respectively. This specificity gives traders more options in how they expose themselves to these digital asset commodities, enabling them to take advantage of opportunities in the volatile environment of the cryptocurrency market.
One of the key advantages of these institutional-sized contracts is the significantly lower fees compared to traditional offerings. The exchange aims to maximize capital efficiency for institutions by reducing trading costs, thereby fostering greater accessibility and participation in the crypto ecosystem.
To facilitate seamless access to these futures contracts, Coinbase has partnered with prominent FCMs, brokers, and front-end providers to give easy access to these futures contracts. The partnership is to ensure that institutional clients can quickly integrate the contracts into their existing trading platforms, allowing them to fully capitalize on the new opportunities given by the derivatives market.
The institutional-sized Bitcoin and Ether futures contracts on Coinbase Derivatives Exchange are set to launch on June 5, marking another significant milestone in the exchange’s mission to provide innovative financial solutions to its clients. As early adopters of these contracts, eligible institutions may also qualify for various incentive programs, further enhancing the benefits of their participation.
With the introduction of these institutional-sized contracts, Coinbase is taking a significant step towards catering to the specific needs of institutional investors. It reflects the exchange’s commitment to delivering innovative financial instruments tailored to the requirements of this market segment.
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