Coinbase Introduces Crypto Futures Trading Services for US Retail Traders
The experienced consumers of the Coinbase hailing from the United States can now access nano-sized futures contracts. These nano-derivative contracts consist of the 100th of a Bitcoin and the 10th of an ETH.
Coinbase Acquired License from FCM
Coinbase has enabled the products for its Advanced account holders. The service was announced four months after Coinbase Financial Markets (CFM) acquired a license from Futures Commission Merchant (FCM).
According to the official announcement, CFM confirmed the license on 17th August from National Futures Association (NFA). It is a Commodity Futures Trading Commission based self-regulatory organization.
Under the new regulatory approval, the CFM can now offer crypto futures contracts to qualified cryptocurrency traders. CFM shared the details with Coinbase Advanced. The agency revealed that CFM consumers may now earn fractionalized futures contracts.
Coinbase to Introduce Nano-Sized Futures Contracts
CFM CEO Andrew Sears told the media that contracts cater to consumers operating at a lower capital requirement. Therefore, they open the way for affordable investment options to a wide array of retail consumers.
On the other hand, nano-ETH contracts allow consumers to manage associated risks, perform margin trades, and speculate ETH prices. Furthermore, nano-sized BTC contracts also allow consumers to place bets on the future prices of Bitcoin.
At the same time, consumers are able to access leveraged and cash-settled crypto futures contracts that are regulated investment options. Furthermore, the traders are also able to access a litany of educational content from Coinbase Learn.
The investors residing within the USA will operate an active Coinbase account for spot trading by signing up for an FCM futures account.
Crypto Spot Trading Volume Plunges
Coinbase has introduced the nano-futures contract on its website. The platform intends to make the service available as a mobile application in near term.
The exchange platform has decided to extend the derivatives trading options for retail consumers as spot trading volume on the platform has declined compared to last year.
Data projections from CCData have indicatted that Coinbase’s spot trading volume at the trading platform was valued at $76 billion in the third quarter of 2023.
This number is more than half a percentage off in spot trading volume in comparison to last year for the third quarter of 2022. On the other hand, Coinbase spot trading volume for the last year gained momentum following the decline of the Binance exchange after the platform faced lawsuits from the regulators.
Last month, Coinbase officials declined the rumors that the platform has imposed a $5000 per week withdrawal on Bitcoin. The trading platform clarified that BTC withdrawal limits on the trading platform depended on the payment method. The issue got traction on account of a technical error on 23th October with lags in processing trades.
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