Coinbase Welcomes US Investors to Crypto Futures

Coinbase has opened crypto futures trading to
eligible US investors. This development, unveiled in a recent blog post,
followed the crypto exchange’s achievement of regulatory clearance in August. The approval
allowed Coinbase to operate as a futures commission merchant under the National
Futures Association (NFA).

Coinbase’s introduction of futures contracts for
Bitcoin and Ethereum (Ether) offers US traders the
opportunity to trade, hedge their risks, diversify their portfolios, and
speculate on market movements. To access these futures contracts, eligible US
traders must use Coinbase’s trading platform, Coinbase Advanced, and hold a
spot trading account with the exchange.

Sized at 1/100th of a Bitcoin and 1/10th of
Ether, the exchange stated that these futures contracts reduce the upfront capital requirements. This makes them an attractive and affordable investment option
for a broader range of retail customers, effectively democratizing access to
the crypto futures market.

In August, Coinbase secured approval from the NFA to offer crypto futures trading to retail customers in the United States. The
self-regulatory body for the US derivatives industry granted permission to small investors to participate in futures trading of tokens, such as Bitcoin on
Coinbase.

In the official statement, Coinbase stated that the
global crypto derivatives market accounted for approximately 75% of the total
global crypto trading volume. Besides that, it stated that obtaining the
regulatory approval aligned with its broader strategy to expand revenue
streams.

US traders can now trade regulated leveraged crypto futures through Coinbase Financial Markets https://t.co/KIvNFgcERv

— Jared Kirui (@JaredLopta79285) November 1, 2023

The crypto exchange
Exchange

An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv

An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term obtained regulatory approval to
offer digital asset futures amid ongoing regulatory hurdles. In June, the
Securities and Exchange Commission charged Coinbase with offering unregistered
securities and operating as an unregistered broker, national securities
exchange, and clearing
Clearing

Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th

Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term agency. However, Coinbase has denied these allegations
and is defending itself in court.