Coinbase Makes History with US Approval for Crypto Futures
Crypto derivatives are one of the most popular products to emerge from the crypto sector of the global financial market. While spot trading remains the most popular choice for crypto traders, derivatives are quickly catching up. According to CCData, crypto options trading volume on the CME or Chicago Mercantile Exchange increased to around $1 billion in July.
Crypto derivatives are gaining popularity in the United States, and now American crypto aficionados have a completely new platform for fast crypto derivatives trading. This new protocol would be created by the cryptocurrency exchange Coinbase Global.
Coinbase Global has become the first crypto firm to be approved to provide crypto futures to retail consumers in the United States, a historic event in the US crypto market. The approval took effect on August 16.
The Terra-LUNA death spiral, followed by the bankruptcy of FTX, Celsius, and other significant crypto organisations, caused many retail and institutional investors to remove their stakes in the market in 2022. This ultimately resulted in both spot and futures markets losing ground, and the repercussions are still being felt, with CCData reporting that total crypto spot and derivatives trading volume on US-based centralised crypto exchanges fell by 12% in July to $2.36 trillion.
However, US investors can now hope that Coinbase Global will improve the US crypto derivatives environment by becoming the first regulated crypto firm to bring crypto futures to the country.
The news comes as the US crypto market awaits the SEC’s approval of the BlackRock spot ETF, which, by the way, lists Coinbase as a partner in a surveillance-sharing agreement mandated by the SEC (US Securities and Exchange Commission). A Bitcoin spot ETF is another breakthrough crypto-based product that would allow BTC trading on regulated conventional exchanges and provide traditional investors with a smooth crypto learning curve.
As BlackRock and a slew of other applicants await clearance on their Bitcoin spot ETF plans, the US appears to be on the verge of establishing a well-regulated crypto market, which would help crypto gain acceptability around the world.
Keywords: Crypto, Coinbase, Bitcoin
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