Coinbase launched perpetual futures trading in the U.S., with eligible users in the country set to access two futures contracts as of July 21.
The exchange stated on Monday that 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 follows Coinbase’s announcement a few weeks prior regarding its plans to offer the product in the U.S. Customers seeking access to the futures offering on Coinbase must have an account, where they will open a Coinbase Financial Markets account, the exchange stated.
Perpetual Futures Drive 90% of Trading Volumes
Moreover, Coinbase’s unveiling of the Bitcoin and Ethereum perks on the regulated platform adds to the growing resurgence of the crypto markets in the U.S. Significantly, much of this has occurred amid an 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 without monthly expiration dates.
Perpetual futures trading accounts for almost 90% of trading volumes in crypto. While Coinbase’s international users have had access to the perps, the U.S. regulatory landscape previously prevented the exchange from offering it. The launch changes all that.
“The wait is over – Perpetual futures have arrived in the U.S.,” Coinbase noted on X.
Users can trade with up to 10x leverage and fees as low as 0.02%, apart from offering no monthly expirations.
Coinbase will offer long-dated perpetual futures with five-year expiration dates, unlike traditional futures that provide only monthly or quarterly expirations. Users will benefit directly from this extended timeframe. 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.
