Coinbase Global has applied to trade cryptocurrency futures as the exchange pushes into the derivatives market.
The biggest U.S. cryptocurrency exchange has filed an application with the National Futures Association to register as a futures commission merchant.
Cryptocurrency futures and options have long been missing from Coinbase’s portfolio, while Bitcoin derivatives have become a huge market. Most of the world’s other exchanges, such as Binance and FTX, already offer them.
Market leader Binance has seen Bitcoin futures trading volume of more than $15 billion U.S. per day. However, some U.S. exchanges have stayed away from this fast-growing market due to regulatory uncertainty.
Cboe Global Markets, Inc. was the first to list Bitcoin futures in the U.S. in 2017. Today, overseas exchanges have the lion’s share of the market. They typically attract derivatives traders by offering them up to 100 times leverage, which a highly regulated exchange like Coinbase is unlikely to do.
Coinbase is working to grow its stable of products to be less dependent on spot trading fees. Earlier this year, Coinbase bought Skew, which monitors and tracks the derivatives market.
