Coinbase announced plans to launch 24/7 Bitcoin and Ether futures trading in the US, including long-dated perpetual futures.
Coinbase's New Step in Futures Trading
On March 10, Coinbase revealed its plans to offer 24/7 trading for Bitcoin and Ether futures to US residents. This includes the launch of perpetual futures—contracts with long expirations. American traders currently face fixed trading hours and expiring contracts, which may lead to inefficiencies.
Market Competition
Coinbase's new services will face competition from companies like the CME Group, which reported an average daily trading volume of $10 billion for crypto derivatives in 2024. However, these derivatives are available for trading six days a week. Additionally, Robinhood could be a competitor, having announced its own plans to offer Bitcoin and Ether futures in January.
Context and Regulation
Regulatory uncertainty in the US over crypto derivatives means many exchanges don't allow such trading for US residents. Coinbase said it is working with the Commodity Futures Trading Commission for regulatory clarity. In September 2023, the crypto derivatives market reached $1.3 trillion, surpassing the spot crypto market.
Coinbase is significantly expanding its presence in the futures market, but faces serious competition and regulatory challenges in the US.
