Institutional clients will soon have access to Bitcoin (BTC) and Ether (ETH) tracked futures on Coinbase Derivatives Exchange, according to a recent announcement by Coinbase.
The regulated futures offering aims to meet the growing demand from institutional investors, following the launch of Coinbase‘s nano Bitcoin (BIT) and nano Ether (ETI) contracts last year.
The BTI and ETI futures contracts, denominated in 1 Bitcoin and 10 Ether per contract respectively, will provide institutional traders with the ability to hedge market positions, express long-term market views, and leverage the contracts in complex trading strategies. These futures contracts will be settled in U.S. dollars on a monthly basis.
With current prices, the BTI futures contract represents a notional value of $30,000, while the ETI futures contract is valued at $20,000.
Coinbase emphasizes that BTI and ETI futures will be offered at significantly lower fees compared to traditional offerings, providing a cost-effective solution for institutional clients.
Crypto derivatives markets have gained popularity among market participants, attracting over $134 billion in notional volume traded across exchanges in the past 24 hours.
Within this market, Bitcoin and Ether tracked products account for more than $25 billion of the trading volumes. It’s important to note that the crypto derivatives market is largely unregulated, although it continues to thrive as a preferred trading avenue for many investors.
