Coinbase Introduces CFTC-Supervised Permanent Futures Contracts for American Investors
In a significant move for the American cryptocurrency trading landscape, Coinbase and Kraken have recently launched regulated futures offerings. These new services, compliant with the U.S. Commodity Futures Trading Commission (CFTC), aim to cater to various levels of traders, each with their unique features and advantages.
Coinbase's offering, accessible through its Coinbase Financial Markets (CFM) platform, introduces **CFTC-regulated perpetual futures** for U.S. traders. Each contract represents a small portion of the underlying cryptocurrency, such as Bitcoin or Ethereum, and supports up to 10x intraday leverage. Notably, these contracts do not have monthly expiration dates, allowing traders to maintain positions indefinitely. Trading fees are as low as 0.02% per contract, and the platform emphasises a user-friendly experience, integrated with traditional finance channels for a seamless trading experience.
On the other hand, Kraken provides access to traditional CFTC-regulated futures contracts listed on the Chicago Mercantile Exchange (CME) through its Kraken Pro platform. Kraken recently acquired NinjaTrader, a retail futures brokerage firm that holds a Futures Commission Merchant (FCM) license, facilitating its entry into the U.S. derivatives market. These standard futures contracts, including Bitcoin and Ether futures, have fixed expiration dates and offer seamless collateral transfers between spot and futures trading on one interface. Kraken Pro appeals more to advanced and institutional traders seeking established CME liquidity and multi-asset trading capabilities.
| Feature | Coinbase CFTC-Regulated Perpetual Futures | Kraken CFTC-Regulated Futures (CME Access) | |---------------------------------|--------------------------------------------------------|-----------------------------------------------------| | Futures Type | Perpetual (no expiration) | Traditional (fixed expiration on CME) | | Leverage | Up to 10x | Varies, typically CME standard leverage (may differ)| | Contract Size | Nano Bitcoin/Ethereum (smaller, retail focused) | Standard CME contract sizes | | Platforms | Coinbase main platform, integrated with fiat onramps | Kraken Pro with futures alongside spot trading | | Target Traders | Broader U.S. retail market | More advanced and institutional traders | | Trading Fees | 0.02% per contract | Tiered maker-taker fees, generally lower at high volume| | Regulatory Compliance | CFTC-regulated under recent U.S. legislation | CFTC-regulated with institutional-grade infrastructure via NinjaTrader acquisition|
Both platforms offer a compliant framework for leveraged trading and hedging. The perpetual contracts on Coinbase have five-year durations and do not require monthly rollovers. The initial offering includes nano Bitcoin (BTC-PERP) and nano Ether (ETH-PERP) perpetual futures, marking the first time American retail investors can access these derivatives in a fully regulated environment.
As these developments unfold, Coinbase and Kraken join the expanding list of exchanges offering regulated derivatives in the U.S. market. These moves are expected to further legitimise the cryptocurrency industry and provide more opportunities for investors in the United States.
- The Coinbase Financial Markets (CFM) platform now offers CFTC-regulated perpetual futures for Bitcoin and Ethereum, each contract representing a small portion of the underlying cryptocurrency.
- Kraken Pro, Kraken's platform, gives users access to traditional CFTC-regulated futures contracts listed on the Chicago Mercantile Exchange (CME), appealing more to advanced and institutional traders.
- In its new offering, Coinbase introduces CFTC-regulated perpetual futures with up to 10x intraday leverage and contracts that do not have monthly expiration dates.
- Kraken's acquisition of NinjaTrader allows it to offer CFTC-regulated futures contracts with seamless collateral transfers between spot and futures trading, catering to more experienced and institutional traders.
- The expansion of regulated derivatives offerings by Coinbase and Kraken, compliant with the U.S. Commodity Futures Trading Commission (CFTC), is expected to further legitimise the cryptocurrency industry and present more opportunities for investors in the United States, leveraging technology and finance for improved trading and investing experiences.