Coinbase Derivatives Makes History with Launch of Bitcoin Cash and Litecoin Futures

Coinbase Derivatives, the first CFTC-regulated exchange, has launched margined Bitcoin Cash and Litecoin futures contracts. These contracts offer retail traders diversification, price discovery, risk management, and margin with reduced upfront capital requirements. The launch of these contracts expands Coinbase Derivatives' offerings to include more digital assets and enhances trading opportunities in the crypto market, fostering a more inclusive and dynamic trading environment.

Coinbase Derivatives Revolutionizes Crypto Trading with Launch of Bitcoin Cash, Litecoin Futures

April 19, 2024

In a groundbreaking move, Coinbase Derivatives has emerged as the first CFTC-regulated exchange to offer margined Bitcoin Cash (BCH) and Litecoin (LTC) futures contracts. Launched earlier this month, these contracts have garnered significant traction and are poised to reshape the crypto derivatives landscape.

Expanding Crypto Futures Horizons

Coinbase Derivatives' latest offerings complement its existing Bitcoin Cash and Litecoin contracts, which debuted on April 1. Furthermore, the exchange is set to unveil Dogecoin futures later this month, catering to the growing demand for derivative products in the digital asset realm.

Enhanced Accessibility and Risk Management

These contracts are available for trading through Coinbase Derivatives' extensive network of broker and FCM (futures commission merchant) partners. The primary objective behind the launch is to establish markets that provide retail traders with diversification, price discovery, and risk management tools.

Since the inception of its BCH and LTC futures contracts, Coinbase Derivatives has witnessed increased market depth and tighter spreads. The firm anticipates that its broker partners and FCMs will play a pivotal role in broadening access to these contracts in the coming weeks.

Adherence to Regulatory Frameworks

In line with its comprehensive futures strategy, these contracts are designed to enhance access to digital asset trading. They enable traders to participate in the crypto market with reduced upfront capital requirements, while also operating within a regulated framework.

The contracts, meticulously designed with notional values of 1 BCH, 5 LTC, and 5000 DOGE, are tailored to cater to both experienced investors and retail enthusiasts alike. They empower traders to capitalize on price movements and strategically manage their existing holdings.

Unprecedented Trading Activity

Coinbase Derivatives has observed sustained trading activity in its nano Bitcoin (BIT) and Ethereum (ET) contracts, collectively amassing over *$5 billion in notional value traded year-to-date.

To meet the burgeoning demand from retail traders, the exchange has expanded its futures offerings to encompass a wider spectrum of digital assets. This strategic move aligns with Coinbase Derivatives' commitment to address the growing needs of its expanding trader network.

Pioneering Regulated Futures Exchange

As the first CFTC-regulated futures exchange to offer margined futures contracts for Bitcoin Cash, Dogecoin, and Litecoin, Coinbase Derivatives remains steadfast in its commitment to uphold the highest standards of integrity and transparency.

Through adherence to stringent regulatory requirements and collaboration with reputable third-party FCMs and retail brokers, Coinbase Derivatives provides retail customers with a secure and reliable platform for trading derivatives of digital assets.

Bridging Traditional Finance and Digital Assets

The establishment of these markets ensures pivotal price discovery for additional crypto assets, advancing Coinbase Derivatives' overarching goal of bridging the gap between traditional finance and digital assets.

The firm eagerly anticipates the maturation of these contracts and the liquidity they will inject into the regulated market, benefiting both retail and institutional investors.

Source: Coinbase