Coinbase Breaks the Shackles of Fixed Hours with 24/7 Bitcoin and Ethereum Futures Contracts

A revolution that, beyond simplifying access, redefines the rules of the game in the face of fierce competition.

Time no longer has a grip on the crypto markets. Coinbase has just announced 24/7 trading of futures contracts on bitcoin and ethereum for American residents. A revolution that, beyond simplifying access, redefines the rules of the game in the face of fierce competition. But behind this boldness lie subtle stakes: regulation, technical innovation, and the battle to dominate an exploding derivatives market.

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Unleashing Bitcoin Around the Clock: When Coinbase Is Unrolling Liquidity

A market that never blinks? This is now a reality for American traders. By launching perpetual futures contracts on bitcoin and Ethereum, Coinbase is eliminating the programmed obsolescence of traditional contracts. No more binding expiration dates, no more anxiety-inducing calculations to anticipate closures. An unprecedented fluidity, designed to match the frantic pace of cryptos, where every second counts.

However, this freedom comes at a price: regulatory complexity. The perpetuals, these contracts without maturity, have long been the preserve of offshore platforms, deemed too risky by American authorities. Coinbase is taking a bold gamble here: collaborating closely with the CFTC (Commodity Futures Trading Commission) to clarify the rules and operate in complete transparency. A delicate dance between innovation and compliance, where every move is scrutinized. If this balance is found, America could finally catch up to platforms like Binance or Bybit, already dominant outside its borders.

The numbers speak for themselves. According to AlphaPoint, the crypto derivatives market reached $1.3 trillion in monthly volume in September 2023, smashing the spot market. By opening the floodgates to non-stop trading, Coinbase is not only responding to a latent demand — it captures a titanic flow, long ignored due to fears of regulatory wrath.

CME, Robinhood: The War of Contracts Is Heating Up

In the arena of derivatives, Coinbase is not alone. Facing it is CME Group, a historical giant, that boasts an average daily volume of $10 billion on its crypto contracts — but with a surprising limitation: a weekly break on Sundays. An anachronism in the era of algorithms and trading robots.

However, CME remains a formidable opponent, with annual revenues exceeding $6 billion and unmatched institutional credibility. Its size allows it to set the standard, and it's interesting to note that CME's crypto futures were launched in December 2017, at the height of the bull market, while its volumes are stagnating, contrasting with the dynamism of offshore platforms.

On the other hand, Robinhood is betting on simplicity. The platform, known for its public-friendly approach and stock trading app, unveiled its own bitcoin and Ethereum futures contract projects in January. A predictable move, but one that nonetheless highlights a broader trend: the democratization of sophisticated instruments.

Coinbase, on the other hand, is betting on expertise. Its dedicated subsidiary, Coinbase Financial Markets, is already offering derivatives in the United States, specifically on bitcoin and ether, to professional clients since last year. By extending its hours, it appeals to this segment, for whom the New York night is the Asian day.

But the real battle is fought elsewhere. It opposes two visions: that of a mature crypto market, integrated into traditional standards and supervised by American regulators, against that of a rebellious ecosystem, pushing the limits of innovation and financial products in a no-holds-barred fashion.

Coinbase embodies this duality. By working hand-in-hand with the CFTC and announcing this service in March, it legitimizes perpetual contracts without denying the disruptive DNA of cryptos, operating at the forefront of an industry in upheaval. A fragile balance, where each decision can either reinforce investor confidence or awaken their distrust, especially in a context of bitcoin and dollar retreat.