On June 27, the Coinbase Derivatives Exchange (formerly the FairX Exchange) announced that it would launch its first crypto derivatives investment vehicle for 1/100th the value of bitcoin. The new “Nano Bitcoin Futures” product will be listed under the ticker “BIT”. Coinbase Derivatives is regulated by the Commodity Futures Trading Commission (CFTC).
Coinbase Introduces BIT, a Futures Product that is pegged to 1/100th of a Bitcoin
Coinbase is entering the world of crypto derivatives as the Coinbase derivatives exchange announced the launch of BIT, a nano bitcoin futures product tied to 1/100th of bitcoin (BTC). The news comes after Coinbase acquired derivatives exchange Fairx in mid-January 2022 as the company said it would leverage Fairx’s exchange infrastructure.
“This is a significant step towards Coinbase ultimately making the derivatives market accessible to millions of our customers through an industry-leading, simplified user experience,” Coinbase said at the time. While the Nano bitcoin futures product will be managed by the Coinbase Derivatives Exchange, investors will receive the BIT through retail stockbrokers on June 27.
The news comes after several changes made by Coinbase in recent days. For example, on June 22, the company revamped Coinbase Wallet to “make Web3 more accessible and intuitive.” Furthermore, a day after revealing the improved wallet, Coinbase reported that it was linking Coinbase Pro (the exchange) with a user’s Coinbase account.
“We plan to merge the features and fee schedule of Coinbase Pro into a new integrated Coinbase account that offers our users the choice of an enhanced trading experience or the simplicity of the Coinbase Consumer App,” said Coinbase. Explained, Coinbase will not be the only one to offer nano-style crypto futures, as the CME Group and FTX-acquired Ledger also offer micro-contracts.
CME Group launched micro bitcoin and micro ether futures in late March and each product is 1/10 the size of a bitcoin or ether. FTX US Derivatives (formally Ledgerx) offers bitcoin mini futures contracts and investors can participate for as little as 0.01 BTC. As far as the Coinbase Nano Bitcoin Futures is concerned, investors will be able to receive BIT from brokers such as Wedbush, EdgeClear, NinjaTrader, Ironbeam, Optimus Futures, Tradevot, Stage 5 and others.
What do you think about Coinbase derivatives exchange product BIT? Let us know what you think about this topic in the comment section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.