- Coinbase announced that it is launching support for Solana and Avalanche perpetual future contracts.
- If liquidity conditions meet the criteria, Coinbase’s SOL-PERP and AVAX-PERP markets will start on November 14.
- On October 19, Coinbase received regulatory approval to enable retail perpetual futures trading.
On November 13, Coinbase International Exchange announced that it will be launching support for Solana and Avalanche perpetual futures contracts on the exchange and Coinbase Advanced. Moreover, if liquidity conditions are met, Coinbase’s SOL-PERP and AVAX-PERP markets will be live at 4 PM UTC on November 14.
Back in August, Coinbase stated its successful approval by the National Futures Association (NFA), which holds the status of a recognized self-regulatory body under the jurisdiction of the Commodity Futures Trading Commission (CFTC). With this authorization, Coinbase functions as an officially registered Futures Commission Merchant (FCM).
Consequently, on August 16, Coinbase users in the United States were able to access federally regulated crypto derivatives with margin. Brian Armstrong, CEO of Coinbase, expressed this development as a “significant milestone for crypto regulatory clarity in the U.S.”
Finally, on October 19, Coinbase received regulatory approval to enable retail perpetual futures trading for eligible non-US customers. In a post on X (formerly Twitter), Linda P. Jones, author of the book “3 Steps to Quantum Wealth,” explained the implications of this approval for XRP futures trading on the crypto exchange at that time. According to Jones, there were three significant implications for this development including a bullish season for XRP. Jones further added,
Wall Street firms, mostly hedge funds, are the firms who trade futures contracts. This is about institutional money coming into the trade, it is not about retail investors. This is bullish for XRP because it means the large wave of institutional money is close to coming in and they want to trade on the volatility.
Perpetual futures contracts have increased demand in the crypto market. As of November 10, according to data from Laevitas, the global volume for perpetual contracts on centralized exchanges (CEX) reached $195.3 billion. Binance, a competitor of Coinbase, secured the highest volume, with OKX exchange following closely.
Research analyst at Kaiko, Conor Ryder shared with Bloomberg that the ratio of Bitcoin perpetual to spot volume is currently at its highest level in nearly two years. He added that these perpetual contracts, often referred to as “perps” in industry terminology, do not have expiration dates and have garnered significant popularity among traders.
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