As noted by Coinbase, “With the launch of these institutional-sized USD-settled contracts, we look to empower institutional participants with greater precision in managing crypto exposure.”
Coinbase’s CFTC-approved derivatives exchange will add Bitcoin (BTC) and Ether (ETH) futures contracts for institutional clients on June 5.
According to its blog post, Coinbase has set fixed sizes for its futures contracts to provide better exposure management facilities to its customers. Therefore, each Coinbase Bitcoin (BTI) futures contract will be sized at 1 BTC, while Coinbase Ether (ETI) futures will have a specific size of 10 ETH per contract.
The BTI futures will have a tick value of $5 for each contract, with price increments of $5 per Bitcoin. Similarly, each Ether futures contract will have a tick value of $5 and minimum price increments of $0.5 per ETH.
Coinbase claimed its latest offerings will be available in partnership with institutional futures commission merchants, front-end providers, and brokers.
The firm added its Bitcoin and Ether futures will have significantly lower fees than traditional offerings to reduce trading costs for its institutional investors. Coinbase, however, has yet to release a fee structure for its derivatives contracts.
Coinbase also mentioned that early adopters of futures contracts may qualify for additional incentive programs.
The announcement came a few weeks after Coinbase established an offshore derivatives exchange in Bermuda. With the launch of Coinbase International Exchange (CIE), the firm intends to offer perpetual BTC and ETH futures to non-US institutional clients.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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