Coinbase Welcomes US Investors to Crypto Futures Trading

<p>Coinbase has opened crypto futures trading to
eligible US investors. This development, unveiled in a recent blog post,
followed the crypto exchange's achievement of regulatory clearance in August. The approval
allowed Coinbase to operate as a futures commission merchant under the National
Futures Association (NFA). </p><p>Coinbase's introduction of futures contracts for
Bitcoin and Ethereum offers US traders the
opportunity to trade, hedge their risks, diversify their portfolios, and
speculate on market movements. To access these futures contracts, eligible US
traders must use Coinbase's trading platform, Coinbase Advanced, and hold a
spot trading account with the exchange. </p><p>Sized at 1/100th of a <a href="https://www.financemagnates.com/tag/bitcoin/" target="_blank" rel="follow">Bitcoin</a> and 1/10th of
<a href="https://www.financemagnates.com/tag/ether/" target="_blank" rel="follow">Ether</a>, the exchange stated that these futures contracts reduce the upfront capital requirements. This makes them an attractive and affordable investment option
for a broader range of retail customers, effectively democratizing access to
the crypto futures market.</p><p>Coinbase Expands Futures Offering with NFA's
Approval</p><p>In August, Coinbase <a href="https://www.financemagnates.com/cryptocurrency/patience-pays-coinbase-receives-approval-for-crypto-futures-trading-in-the-us/" target="_blank" rel="follow">secured approval from the NFA to offer crypto futures</a> trading to retail customers in the United States. The
self-regulatory body for the US derivatives industry granted permission to small investors to participate in futures trading of tokens such as Bitcoin on
Coinbase. </p><p>In the official statement, Coinbase stated that the
global crypto derivatives market accounted for approximately 75% of the total
global crypto trading volume. Besides that, it stated that obtaining the
regulatory approval aligned with its broader strategy to expand revenue
streams.</p><blockquote><p lang="en" dir="ltr">US traders can now trade regulated leveraged crypto futures through Coinbase Financial Markets <a href="https://t.co/KIvNFgcERv">https://t.co/KIvNFgcERv</a></p>— Jared Kirui (@JaredLopta79285) <a href="https://twitter.com/JaredLopta79285/status/1719735500934717602?ref_src=twsrc%5Etfw">November 1, 2023</a></blockquote><p>The crypto <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> obtained regulatory approval to
offer digital asset futures amid ongoing regulatory hurdles. In June, the
Securities and Exchange Commission <a href="https://www.financemagnates.com/cryptocurrency/after-binance-sec-sues-coinbase-over-illegal-operation-of-crypto-exchange/" target="_blank" rel="follow">charged Coinbase </a>with offering unregistered
securities and operating as an unregistered broker, national securities
exchange, and <a href="https://www.financemagnates.com/terms/c/clearing/">clearing</a> agency. However, Coinbase has denied these allegations
and is defending itself in court.</p><p>Expanding Crypto Services in the US</p><p>This recent launch of futures contracts for US
investors happened after Coinbase International Exchange introduced perpetual
futures trading in May, initially for non-US institutional investors. According
to the company, this new offering gives traders more tools to
navigate the volatile crypto market, diversify their portfolios, and increase
their gains. </p><p>The NFA's approval marked the first time a
cryptocurrency group has been designated as a futures commission merchant. This
designation placed Coinbase in direct competition with traditional futures
brokers like Interactive Brokers, a shift from its previous focus on
institutional investors for futures trading, the Financial Times reported. </p>

This article was written by Jared Kirui at www.financemagnates.com.