Coinbase Seeks CFTC Approval for Dogecoin, Litecoin, and Bitcoin Cash Futures

Coinbase has submitted applications to the CFTC seeking approval to launch futures trading on Dogecoin [DOGE], Litecoin [LTC], and Bitcoin Cash [BCH] on April 1. The submissions made on March 7 went unnoticed. A total of three letters were sent addressing Christopher J. Kirkpatrick, Secretary of the Commission. The futures contracts are set to begin trading by April 1.

Coinbase Seeks CFTC Approval for Dogecoin, Litecoin and Bitcoin Cash Futures

Coinbase has filed applications with the Commodity Futures Trading Commission (CFTC) seeking approval to launch futures trading on Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) on April 1. The submissions, made on March 7, have largely gone unnoticed until now.

In three separate letters addressed to Christopher J. Kirkpatrick, Secretary of the Commission, Coinbase outlined its plans for the new futures contracts. If approved by the CFTC, these contracts will provide investors with a regulated environment to trade these popular cryptocurrencies.

Coinbase is leveraging its self-certification status with the CFTC to expedite the listing and ensure compliance. All three cryptocurrencies are derived from Bitcoin and have been classified as commodities by the Securities and Exchange Commission (SEC).

Dogecoin Futures Contract Details

The Dogecoin Futures contract will be a monthly cash-settled and margined contract. Each contract will represent 5,000 Dogecoin, with a nominal value of approximately $600. The contract code will be "DOG," and trading will be based on the Market Vector Coinbase Dogecoin Benchmark Rate Index.

The letter specifies that the daily settlement price for the Dogecoin Futures contract will be determined by the index value at 4:00 PM London time. To ensure market integrity and prevent disruption, Coinbase has established position limits for the contract. The initial limit will be 25 contracts, with a maximum of 20,000 contracts per trader.

Dogecoin's Evolution Beyond Meme Status

The inclusion of Dogecoin in Coinbase's futures offering has generated excitement within the cryptocurrency community. Created in December 2013 as a meme coin, DOGE has gained widespread popularity and recognition. In addition to its use for online tipping and charitable contributions, DOGE has attracted significant institutional support. It is currently the largest meme coin by market capitalization, with over 140 billion tokens in circulation.

Growing Demand for Regulated Cryptocurrency Products

Coinbase Derivatives LLC's decision to list Dogecoin futures reflects the growing interest and demand for regulated cryptocurrency products. The launch of these contracts will provide investors with a secure and transparent way to trade these digital assets.

DOGE's Surge and the $1 Milestone

Following the announcement, DOGE, currently trading at around $0.15, experienced a significant surge in value, rising over 13% in a single day. This has reignited discussions among investors that the elusive $1 milestone is not merely a meme but a realistic possibility within the current market cycle.