Markets
Coinbase Unveils SHIB and AVA Futures to Deepen Access to Cryptocurrency Market
Coinbase is here to shake things up! As part of a strategic move to expand its product offerings, Coinbase has filed for regulatory approval with the Commodity Futures Trading Commission (CFTC) to offer futures contracts on several altcoins, including SHIB and AVA. The move is intended to improve trading options and attract more institutional investors, with the new futures contracts potentially launching as early as July 15.
What does this mean for the future of cryptocurrency trading? Read on to find out!
Diversify product offerings
Coinbase deposit for CFTC Approval for SHIB and AVA futures marks a significant expansion of its product range. These new futures products are designed to provide investors and traders with innovative mechanisms to manage risk, navigate price fluctuations, and engage more holistically in the cryptocurrency market.
This step is part of Coinbase’s strategy to diversify its portfolio and improve the trading experience of its users by requiring less initial capital.
Strategic partnerships
In addition to expanding its product offerings, Coinbase has partnered with Stripe to improve 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 accelerate transactions in over 150 countries and simplify the process of converting fiat currency to crypto for US customers.
Beyond regulatory compliance, Coinbase’s strategy is designed to attract more institutional investors by offering regulated trading options. With the SEC’s stance on risk assets still unclear, CFTC approval could open the futures market to a wider audience, increasing participation and liquidity.
Market impact
At the time of writing, AVA had the largest market cap among the altcoins on offer, standing at $11.1 billion, with a slightly increasing trading price. Despite its lower price, SHIB remains a popular choice among investors, with a market cap of $10.1 billion, reflecting a diversified interest in the crypto market. SHIB has dropped 3.7% to $0.00002 per token in the last 24 hours.
Other altcoins also saw declines, with LINK down 4.3% to $13.7 and DOT down 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 cryptocurrency futures? Check out our explanatory article: Find Out What Futures Trading Strategies You Can Use in 2024 (Crypto Edition)