KEY TAKEAWAYS
- Coinbase launches 24/7 trading for Bitcoin and Ethereum futures, a first on a CFTC-regulated exchange.
- This initiative allows U.S. traders continuous access to manage risk and respond to market events in real-time.
- Partnerships with Nodal Clear and Virtu Financial ensure robust risk management and liquidity for seamless trading.
- Coinbase plans to introduce perpetual-style futures, expanding regulated crypto trading options in the U.S.
Coinbase has announced the launch of 24/7 trading for Bitcoin and Ethereum futures, marking a significant development in the U.S. derivatives market. This initiative is the first of its kind on a Commodity Futures Trading Commission (CFTC)-regulated exchange, providing U.S. traders with continuous access to leveraged futures contracts.
Starting May 9, 2025, Coinbase Derivatives, LLC (CDE) will offer round-the-clock trading for both retail and institutional-sized Bitcoin and Ethereum futures. This move aims to align with the always-on nature of cryptocurrency markets, allowing traders to manage risk and respond to market events in real-time, including weekends.
Continuous Market Access and Future Plans
The introduction of 24/7 trading eliminates the constraints of traditional market hours, enabling U.S. traders to execute trades and manage risk at any time. Coinbase is also working on introducing perpetual-style futures to the U.S. market, which are popular in the crypto space but have not yet been available in a regulated environment.
Coinbase’s infrastructure is designed to support the continuous nature of crypto markets, ensuring performance and reliability at all hours. This is achieved in partnership with Nodal Clear, a CFTC-regulated clearinghouse, and market maker Virtu Financial, among others.
Partnerships and Market Impact
In collaboration with Nodal Clear, all trades are cleared through a regulated clearinghouse, providing transparency and compliance. Paul Cusenza, Chairman and CEO of Nodal Clear, emphasized the importance of robust risk management for 24/7 trading, ensuring continuity and integrity for market participants.
Virtu Financial, a key market maker, contributes to maintaining liquidity across Coinbase’s digital asset ecosystem. Andrew Smith, Senior Vice President at Virtu Financial, highlighted the alignment of 24/7 trading with the global nature of digital assets.
Coinbase Financial Markets, along with Futures Commission Merchants like ABN AMRO and Wedbush Securities Inc., supports the distribution and liquidity network, facilitating seamless onboarding for U.S. traders. Leaders from these organizations have expressed their support for the initiative, recognizing its potential to transform the U.S. derivatives landscape.
For more details, the announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Coinbase has launched 24/7 trading for Bitcoin and Ethereum futures, marking a significant development in the U.S. derivatives market by offering continuous access on a CFTC-regulated exchange.
Recent industry reports indicate that the introduction of 24/7 futures trading addresses inefficiencies in the U.S. crypto futures markets, previously constrained by fixed trading hours. This aligns with the news event as it empowers U.S. traders to manage risk and seize opportunities continuously.
A Finance Magnates report highlights that the market sentiment for Bitcoin is upbeat, driven by factors like the rollout of spot Bitcoin ETFs. This supports the impact of Coinbase’s initiative by indicating a favorable environment for continuous futures trading.
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