Markets
Coinbase Unveils Futures on SHIB and AVA to Deepen Crypto Market Access
Coinbase is here to shake things up! In a strategic move to expand its product offerings, Coinbase has requested regulatory approval from the Commodity Futures Trading Commission (CFTC) to offer futures on several altcoins, including SHIB and AVA. This initiative aims to improve trading options and attract more institutional investors, with the new futures potentially launching as early as July 15th.
What does this mean for the future of cryptocurrency trading? Read on to find out!
Diversifying product offerings
Coinbase’s request to CFTC Approval for SHIB and AVA futures marks a significant expansion in its product line. These new futures products are designed to provide investors and traders with innovative mechanisms to manage risk, navigate price fluctuations, and engage more comprehensively in the cryptocurrency market.
This step is in line with Coinbase’s strategy to diversify its portfolio and improve its users’ trading experience while requiring less initial capital.
Strategic partnerships
In addition to expanding its product offerings, Coinbase has partnered with Stripe to enhance its service and on-chain adoption. This partnership focuses on integrating USDC into Stripe’s Base platform to speed up transactions and reduce service costs. The collaboration aims to speed up transactions in more than 150 countries and simplify the fiat-to-cryptocurrency conversion process for US customers.
In addition to regulatory compliance, Coinbase’s strategy is designed to attract more institutional investors by providing regulated trading options. With the SEC’s stance on risky assets still unclear, CFTC approval could open the futures market to a wider audience, increasing participation and liquidity.
Market impact
At the time of reporting, AVA had the highest market capitalization among the proposed altcoins, standing at $11.1 billion, with its trading price showing a slight increase. Despite its lower price, SHIB remains a popular choice among investors, with a market capitalization of $10.1 billion, reflecting diverse interests in the crypto market. SHIB fell 3.7% to $0.00002 per token in the last 24 hours.
Other altcoins also suffered declines, with LINK dropping 4.3% to $13.7 and DOT dropping 1.9% to $6.19.
By expanding its product offering and improving compliance, Coinbase aims to solidify its position in the cryptocurrency market, making it more accessible and attractive to a wider range of investors.
Confused about crypto futures? Check out our explainer: Discover What Futures Trading Strategies You Can Use in 2024 (Crypto Edition)