Coinbase Derivatives, the derivatives division of the largest US-based cryptocurrency exchange, is set to launch retail-sized futures contracts for oil and gold. While crypto derivatives remain its primary focus, Coinbase Derivatives is expanding into commodities futures contracts to provide customers with more trading opportunities in traditional markets.
Commodity futures contracts require buyers to purchase a specific commodity, such as oil, gold, or silver, at a predetermined price and date in the future. Investors use these contracts to hedge their investment positions and take advantage of price movements in the underlying asset.
According to Coinbase, the introduction of new futures contracts aims to create diversified markets that facilitate price discovery and risk management. The Commodity Futures Trading Commission (CFTC)-registered exchange decided to offer these new contracts in response to increased demand for retail-focused products on regulated exchanges that are easily accessible.
The new commodity futures contracts, which will be sized at 10 barrels of oil and 1 troy ounce of gold, will be launched on June 3rd. They are designed to cater to both seasoned investors and retail enthusiasts.
Coinbase believes that offering participants access to futures on traditional commodities like oil and gold, in addition to crypto commodities, is a natural expansion of its product suite. The company is eager to see these contracts grow and bring liquidity to both retail and institutional investors in a regulated manner.
Disclaimer: The opinions expressed in this article are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are made at the individual’s own risk, and any losses incurred are the responsibility of the investor. Coinbase Derivatives does not recommend buying or selling any cryptocurrencies or digital assets, and it is not an investment advisor. Please note that Coinbase Derivatives may participate in affiliate marketing.
