What happened?
Coinbase Derivatives LLC (CDE) has launched 24/7 trading for Bitcoin and Ethereum futures contracts, becoming the first exchange regulated by the Commodity Futures Trading Commission (CFTC) to offer such nonstop trading in the U.S. This new service allows traders to engage in futures trading at any time of day, throughout nights, weekends, and holidays. The launch marks a significant shift in the American derivatives market, aiming to align with the continuous nature of global crypto trading.
Who does this affect?
This development affects individual and institutional traders in the United States who are interested in trading Bitcoin and Ethereum futures. These traders now have the opportunity to respond promptly to global market developments without being restricted by traditional market hours. It’s also significant for financial institutions like market maker Virtu Financial and Futures Commission Merchants such as ABN AMRO and Wedbush that are partnering with Coinbase.
Why does this matter?
The introduction of round-the-clock futures trading by Coinbase is expected to shake up the market by offering traders greater flexibility and potentially increasing market liquidity. It sets a new standard for crypto derivatives trading in the U.S., intensifying competition among exchanges like Kraken, which is also expanding its derivatives presence. This move might further establish the legitimacy of crypto trading in traditional finance realms, attracting more participants and possibly influencing regulations and market dynamics globally.