Coinbase expands its offerings, the renowned exchange platform has launched CFTC-regulated futures for Hedera (HBAR) and Solana (SOL), enhancing the availability of crypto investment products, and thereby meeting the growing crypto futures demand.
Coinbase has announced an elaboration of its institutional-grade crypto products with the addition of futures contracts for Hedra and Solana. With the February 18 announcement, the leading exchange platform now offers futures contracts for 19 total assets, Dogecoin and Litecoin being the prominent ones. With this more crypto products became available to the US investors.
According to reports, the exchange self-certified with the US Commodity Futures Trading Commission (CFTC) to list futures contracts for Hedera and Solana, marking a new milestone in the evolution of crypto futures trading in the US. Last year, the Coinbase derivatives launched margined futures contracts for Shiba Inu (SHIB), Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), and Stellar (XLM), giving investors and developers to manage risks, predict price changes, and invest with lower capital barriers.
The Solana and Hedra futures contracts carry certain specifications that favor market participants, including 5 SOL for Nano Solana Futures (SOL), 100 SOL per contract for Solana Futures (SLC), and 5000 HBAR per contract for Hedera Futures (HED).
The increase in demand for crypto-focused investment products is like never before, mainly because of the change in administration in the US, headed by the crypto-friendly personality, Donald Trump. To address the soaring demand, many companies have submitted filings to the SEC, seeking approval for spot crypto ETFs. The recent filing for approval to list Solana ETFs by MEXC, gives retail and institutional investors an expanded option rather than Botcoin and EthereumETFs. However, the approval is still pending, it can be extended upto 240 days.
Since August 2023, when Coinbase Finacial Market (CFM) recieved regulatory approval from National Futures Association (NFA) to operate as Futures Commison Merchant (FCM), the exchange expanded its products, offering crypto and traditional commodities contracts to users. It also allowed institutional investors to access the regulated futures.
The eligible users will have access to the futures trading, Coinbase Finacial Market platform can be utilzed for this. Bridging the gap between traditional finace and crypto, Coinbase delivers users necessary tools and advanced trading strategies for managing risks associated with crypto and enabling a seamless trade.
SEC’s Lawsuit Against Coinbase
In 2023 SEC filed a lawsuit against Coinbase, claiming the platform traded Solana as a security, which is against the rules and regulation set by the SEC. However, with the resignation of former SEC chair, Gary Gensler, who was very skeptic about crypto, and a new administry under Mark Uyeda, SEC plans to reconsider its ideologies on crypto and the whole digital asset industry. The law suit has been frozen and a waiting for a higher court to evaluate the matter.
Offering regulated futures products for Solana will be based on the decision of the SEC. The agency may look for facilities and functionalities to address the fraud and market manipulation issues, as it did while approving Bitcoin and Ethereum ETFs.
