US retail traders eye a fresh piece of the crypto derivatives pie
bitcoin buffs have a shiny new derivatives playground that cryptocurrency analysts hope will fire up a moribund market.
Their new platform is cryptocurrency exchange Coinbase Global, which on Aug. 16 became the first crypto-focused firm to win approval to offer cryptocurrency futures to U.S.
retail customers.
It's early days. But crypto markets are excited by the possibility that the first regulated and listed crypto firm to offer futures trading to U.S.
retail investors might revive a shrinking $2 trillion cryptocurrency derivatives market.
«Coinbase's approval to offer U.S. futures has the potential to rekindle hope and momentum in the market,» said Lucas Kiely, chief investment officer of digital investment platform Yield App.
Hope and momentum are in short supply in a market that has seen bitcoin languish for months as hawkish global central banks and troubles at crypto exchanges such as FTX and Binance sapped interest in volatile crypto assets.
Coinbase's announcement also comes at a time when derivatives' trading volumes have shrunk significantly owing to economic uncertainty, continued regulatory hurdles and low volatility that left investors disinclined to make big bets.
Retail traders in the United States can trade bitcoin directly on licensed exchanges such as Bitstamp and Coinbase.
They can trade options on the CME, but only through a broker. Or, they can invest in bitcoin exchange-traded funds (ETFs) issued by fund managers such as ProShares and VanEck.
That is why Coinbase's new offering is creating a buzz.
