Markets
Coinbase Unveils SHIB and AVA Futures to Deepen Crypto Market Access
Coinbase is here to shake things up! In a strategic move to expand its product offerings, Coinbase has applied for regulatory approval from the Commodity Futures Trading Commission (CFTC) to offer futures on several altcoins, including SHIB and AVA. This move is intended to improve trading options and attract more institutional investors, with the new futures potentially launching as early as July 15.
What does this mean for the future of cryptocurrency trading? Read on to find out!
Diversification of product offering
Coinbase’s request CFTC Approval for SHIB and AVA futures marks a significant expansion in its product range. These new futures products are designed to provide investors and traders with innovative mechanisms to manage risk, manage price fluctuations, and engage more fully in the cryptocurrency market.
This step is in line with Coinbase’s strategy to diversify its portfolio and improve its users’ trading experience by requiring lower 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 speed up transactions in over 150 countries and simplify the fiat-to-crypto conversion process for U.S. customers.
In addition to regulatory compliance, Coinbase’s strategy is designed to attract more institutional investors by providing regulated trading options. Since the SEC’s position on risky assets is still unclear, CFTC approval could open the futures market to a broader audience, increasing participation and liquidity.
Impact on the market
At the time of writing, AVA had the largest market capitalization among proposed altcoins, standing at $11.1 billion, with its trading price rising slightly. Despite its lower price, SHIB remains a popular choice among investors, with a market capitalization of $10.1 billion, reflecting the diverse interests in the cryptocurrency market. Over the past 24 hours, SHIB fell by 3.7% to $0.00002 per token.
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 offerings 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 explainer article: Find Out What Futures Trading Strategies You Can Use in 2024 (Crypto Edition)