Coinbase to Offer 24/7 Bitcoin, Ether Futures, Stock Rises 5%

Coinbase, a prominent cryptocurrency exchange, has announced its intention to offer 24/7 trading for Bitcoin (BTC) and Ether (ETH) futures to US residents. This initiative includes the launch of perpetual futures trading with long-date expirations, addressing the inefficiencies caused by fixed trading hours and expiring contracts in the current crypto derivatives market.

Perpetual futures, also known as "perpetuals," are a type of derivative contract that does not have a set expiration date for buying or selling an asset. This feature allows traders to hold positions indefinitely, providing greater flexibility and continuous trading opportunities. Coinbase's move to offer these contracts aims to cater to the growing demand for crypto trading and provide traders with the tools necessary to manage risk and capitalize on market opportunities in real time.

Coinbase is collaborating with the Commodity Futures Trading Commission (CFTC) to ensure that its perpetual futures products meet regulatory requirements. This partnership is crucial as regulatory uncertainty has previously led many exchanges to restrict US residents from trading such products. By working closely with the CFTC, Coinbase aims to provide a compliant and secure trading environment for its users.

This development positions Coinbase as a leader in the US crypto derivatives market, offering a product that is currently unavailable through offshore exchanges due to regulatory constraints. The introduction of 24/7 trading for Bitcoin and Ethereum futures is expected to attract more traders to the platform, as it provides a competitive alternative to global crypto exchanges.

Coinbase's new services will face competition from various companies, including the CME Group, a US derivatives exchange. The CME Group offers crypto derivatives but only for six days a week, highlighting the advantage of Coinbase's 24/7 trading model. Additionally, rival Robinhood has announced plans to offer Bitcoin and Ether futures, further intensifying the competition in the US derivatives market.

By offering perpetual-style futures contracts, Coinbase aims to mirror the global crypto derivatives market while adhering to US regulatory standards. This move is expected to benefit from the increasing pro-crypto regulation in the US, creating new opportunities for traders and investors in the region. Coinbase's commitment to providing a regulated and secure trading environment is expected to attract more users to its platform, further solidifying its position as a leading player in the crypto market.