Coinbase Announces Futures Trading Launch for Dogecoin, Litecoin, and Bitcoin Cash on April 1, 2024
In Brief
Coinbase derivatives trading platform will begin futures trading for Dogecoin, Litecoin, and Bitcoin Cash starting April 1st.
Derivatives trading platform, owned by the cryptocurrency exchange Coinbase, announced its intention to commence futures trading for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) on April 1st.
Futures are a form of derivative trading product. They represent regulated trading contracts between two parties, entailing an agreement to buy or sell an underlying asset at a fixed price on a specified date. Futures allow investors to hedge against volatile markets and secure the ability to buy or sell a specific cryptocurrency at a predetermined price in the future.
Earlier this month, Coinbase sent three letters to the United States Commodity Futures Trading Commission (CFTC), outlining the proposed contract size, settlement method using Market Vector’s benchmark interest rate, and structure of the three futures transactions. Furthermore, the company emphasized its utilization of the self-certification route under CFTC Regulation 40.2(a) to list these futures contracts that allows exchanges to introduce new offerings without directly awaiting CFTC approval, as long as they confirm the product’s compliance with the Commodity Exchange Act and CFTC regulations.
Considering that all three cryptocurrencies are derived from Bitcoin (BTC), which the Securities and Exchange Commission (SEC) recognizes as a commodity, their classification further prompts regulatory questions. James Seyffart, the ETF research analyst at Bloomberg Intelligence, noted, “I wonder if the SEC objects to these being classified as ‘commodities futures’ versus ‘securities futures.’ Given their origins from Bitcoin, arguing these as securities would be challenging, especially after spot Bitcoin ETF approvals. Coinbase’s selection might be strategic.”
Meme Cryptocurrencies Gain Momentum Due to Price Rise
The announcement aligns with the growing focus on memecoins, as the cryptocurrency market sees a rise in new projects. Despite being commonly viewed as lacking intrinsic value, memecoins continue attracting interest as a speculative investment within the ecosystem they operate in. Meanwhile, within the past 24 hours, dog-themed meme tokens have experienced a general increase in value.
The price of Doge token rose by approximately 18.60% to $0.1505, whereas its competitor, Shiba Inu (SHIB), experienced a 9.50% surge and is trading at $0.00002683 at the time of writing, according to CoinMarketCap data.
Another popular meme cryptocurrency, Floki (FLOKI), saw a remarkable rally of over 41%, making it one of the leading gainers in the cryptocurrency market today as it rebounded. The price of Floki increased by 37% to $0.0002445 at the time of writing. Additionally, its trading volume surged by over 64% to $394.55 million.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
