Coinbase has announced the launch of a new type of futures contract that combines major US technology stocks with leading crypto assets. The product will be released on September 22.
Product Information
The new product, named 'Mag7 + Crypto Equity Index Futures', will track the stocks of the seven tech giants: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, along with BlackRock’s Bitcoin and Ether ETFs and Coinbase’s own stock. Each component will have an equal 10% weight.
Bridging Stocks and Crypto
Coinbase stated that no US-listed futures contract has ever provided access to both equities and crypto in one product. This innovation aims to facilitate investors' access to two traditionally separate markets.
Coinbase's Derivatives Strategy
These futures will operate as monthly, cash-settled contracts, rebalanced quarterly. MarketVector will serve as the official index provider. Initially, access will be granted to institutional clients, while retail traders will have to wait a few months. This move marks a significant step for Coinbase as it continues to enhance its assets and strategies in the derivatives space.
The launch of 'Mag7 + Crypto Equity Index Futures' highlights Coinbase's aim to integrate traditional financial instruments and digital assets, potentially transforming investment strategies across both markets.
