Coinbase launches 24/7 Bitcoin and Ether futures trading in the US, directly competing with CME Group and Robinhood.
Coinbase officially launched Bitcoin (BTC) and Ether (ETH) futures contract trading in the US, providing 24/7 trading services to overcome previous limitations on trading hours and maturities. This move marks a strategic step for the exchange in its effort to compete with major players like CME Group and Robinhood in the rapidly growing cryptocurrency derivatives market.
The global cryptocurrency derivatives market has seen monthly trading volume reach $1.3 trillion in September 2023, far exceeding the spot market, according to data from Alpha Point. However, the majority of this trading has occurred outside the US due to legal restrictions. By launching 24/7 BTC and ETH futures trading, Coinbase hopes to attract capital from domestic investors and expand its footprint in the US market.
A key factor in Coinbase's expansion strategy is its close collaboration with the US Commodity Futures Trading Commission (CFTC) to ensure full compliance with legal regulations. This compliance not only legitimizes Coinbase's derivative products but also plays a crucial role in building trust and attracting investors.
However, Coinbase faces fierce competition from established players. CME Group, with $6.1 billion in revenue in 2024 and an average daily cryptocurrency derivatives trading volume of $10 billion in Q4 2024, is currently one of the leading market platforms. Additionally, Robinhood is also planning to launch Bitcoin and Ether futures contracts, becoming a formidable competitor in this field.
Nonetheless, Coinbase has its own advantages. Coinbase Financial Markets, the derivatives platform within the Coinbase ecosystem, has already provided derivative trading services to US residents, laying a solid foundation for the expansion of new financial products and services. By aggressively pushing BTC and ETH futures trading, Coinbase is making a significant bet on the derivatives market and expects to strengthen its position in the US digital asset ecosystem.
