Coinbase launches Bitcoin, Ethereum perpetual futures in US

Coinbase has launched perpetual futures trading in the U.S., with eligible users in the country set to access two futures contracts as of July 21.

On Monday, the exchange said U.S. users can now trade perpetual derivatives via its Coinbase Financial Markets account, initially with access to nano Bitcoin Perpetual Futures (BTC-PERP) and nano Ether Perpetual Futures (ETH-PERP). 

The rollout of the Commodity Futures Trading Commission-regulated crypto perpetuals comes a few weeks after Coinbase announced plans to offer the product in the U.S. Customers looking to access the futures offering on Coinbase must have an account. This is where they will open a Coinbase Financial Markets account, the exchange said.

Perpetual futures make up 90% of trading volumes

Coinbase’s unveiling of the Bitcoin (BTC) and Ethereum (ETH) perks on the regulated platform adds to the growing resurgence of the crypto markets in the U.S. A lot of this has happened amid increased regulatory shift to a supportive environment, largely exemplified by the recent adoption of a major stablecoin bill.

Perpetual futures are a type of derivative contract that allows crypto traders to access higher-leverage trades but without the monthly expiration dates.

In crypto, perpetual futures trading accounts for almost 90% of trading volumes. While Coinbase’s international users have had access to the perps, the U.S. regulatory landscape meant the exchange could not offer it. The launch changes all that.

Apart from offering no monthly expirations, users can trade with up to 10x leverage and fees as low as 0.02%. 

Unlike traditional futures, which offer monthly or quarterly expiration dates, the perpetual futures on Coinbase will be long-dated and see users benefit from expiration dates of five years. The 10x leverage enables enhanced capital efficiency, allowing traders to increase their market exposure and positions.

While this is significant news for BTC and ETH traders, users should be aware of the risks associated with leveraged futures trading. As with any other market, a trade can work for or against a trader, with high leverage meaning increased risk of losses.