Key takeout
Coinbase has put in place a Cardano and natural gas futures contract with its CFTC approval. Cardano futures expose traders to price movements without holding assets.
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Coinbase is seeking regulatory approval to launch Cardano (ADA) and Natural Gas (NGS) futures contracts. This is a move to expand its offering in the energy and crypto derivatives market.
Coinbase Derivatives, Coinbase futures exchange, said on Friday it submitted documents to the CFTC to self-certify ADA and NGS futures.
We look forward to announce that Coinbase Derivatives has submitted to CFTC to self-certified natural gas (NGS) futures and Cardano ($ADA) futures.
I expect it will be live with these products on Monday…pic.twitter.com/yzgmkb1tvm
– Coinbase Institutional
Self-certification by CFTC allows Coinbase to assert regulatory compliance with futures contracts, and will promote launches unless CFTC challenges it. If approved, these new futures contracts are expected to be made public on March 31st.
The move follows Coinbase’s recent introduction of Solana (SOL) and Hedera (HBAR) futures contracts, and is part of the company’s ongoing strategy to enable traders to access both encryption and traditional futures trading on a single regulatory platform.
Cardano is one of the most notable blockchain platforms known for its focus on scalability, sustainability and security. With a dedicated ecosystem and the increasing adoption of Defi, NFTS and Enterprise blockchain solutions, Cardano is naturally adding to Coinbase’s futures lineup.
ADA futures allow traders to be exposed to Cardano price movements without retaining their underlying assets, allowing for sophisticated risk management and leveraged trading strategies.
Following the announcement of Coinbase, the ADA rose by about 2% per Coingecko to $0.75.
With the provision of natural gas futures, Coinbase will be competing with traditional futures exchanges in the energy sector. There, products play an important role in global markets and economic stability.
Although the SEC is cautious about approving cryptographic ETFs, initiation of futures contracts could help alleviate some concerns by providing a regulated framework for price discovery and risk management. This could lead to a higher tendency for the SEC to approve ETFs, especially when futures trading shows market stability.
Grayscale Investments is the only manager to apply for the Spot Cardano ETF. This filing was submitted via NYSE Arca. NYSEARCA has proposed to list and trade Greyscale Cardano Trust stocks on the exchange.
On Tuesday, the SEC postponed its decision on the proposed Grayscale spot Ada ETF, and also extended the review period for other crypto ETFs.
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