On September 22, Coinbase announces the launch of a new futures product that will combine shares of major tech companies and crypto funds.
Launch of the New Product
Coinbase Derivatives will introduce the ‘Mag7 + Crypto Equity Index Futures’ on September 22. This unique product is the first-of-its-kind in the U.S. market that tracks the ‘Magnificent 7’ tech stocks, including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla. Additionally, the index will include Coinbase’s own shares and two large crypto ETFs.
Index Structure and Features
The index will be structured to ensure that each component has an equal weight of 10%, preventing any single asset from dominating the performance. Coinbase will conduct quarterly rebalancing of the index, with MarketBector serving as the official index provider.
Coinbase's Long-Term Plans
Coinbase CEO Brian Armstrong noted that this new product aligns with their long-term goal of becoming a 'everything app' for crypto. He emphasized in a recent post the intent to release more products like this as part of their revamped app that integrates trading, payments, and social interactions. Moreover, there are plans for Coinbase to target the retirement savings market in Australia.
The new product from Coinbase could significantly enhance investor access to the synergy between traditional equity markets and cryptocurrencies while reinforcing the company's ambitions to create a universal platform.
