Coinbase launches regulated crypto futures services for US retail traders
Coinbase Advanced will allow crypto futures contracts controlled by retail traders in the United States four months after Coinbase Financial Markets (CFM) receives approval to operate the Futures Commission Merchant (FCM) component.
In the year On August 17, CFM received regulatory approval from the National Futures Association (NFA), a self-regulatory organization of the Commodity Futures Trading Commission, to operate an FCM and provide crypto futures services to US traders.
In details shared with Cointelegraph, CFM revealed that Coinbase's advanced clients in the US can now trade nano-sized futures contracts of 1/100th of 1 Bitcoin (BTC) and 1/10th of 1 Ether (ETH). As CFM CEO Andrew Sears explained:
“These terms offer lower capital requirements and can be an affordable investment option for many retail clients.”
Nano-Ether contracts allow participants to manage risk, trade on margin, or speculate on the price of Ether. The nano-Bitcoin contract allows users to bet on the future price of BTC.
In addition to offering regulated, leveraged and cash-backed crypto futures, users will also have access to a library of educational content through Coinbase Learn. US residents with an active Coinbase account for spot trading are eligible to create an FCM futures account.
The services are launched on the web version and will soon be available on mobile devices.
Related: Coinbase Reduces Rumors of Weekly Withdrawal Limits on Bitcoin
Coinbase's decision to launch crypto futures services seems natural as the exchange has seen a significant drop in spot trading volume this year compared to 2022.
According to an analysis from digital asset data provider CCData, Coinbase recorded around $76 billion in spot trading volume – a 52% decrease for Q3 2023 compared to the same period in 2022.
Despite a drop in spot trading volume, Coinbase gained market share in the last quarter as crypto exchange Binance came under increased scrutiny from regulators.
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