Coinbase Reveals Futures on SHIB, AVA to Deepen Crypto Market Access

Coinbase is here to shake things up! In a strategic move to expand its product offerings, Coinbase has filed for regulatory approval from the Commodity Futures Trading Commission (CFTC) to offer futures on several altcoins, including SHIB and AVA. This initiative aims to enhance trading options and attract more institutional investors, with the new futures potentially launching as early as July 15.

What does this mean for the future of crypto trading? Read on to find out!

Diversifying Product Offerings

Coinbase’s filing for CFTC approval for SHIB and AVA futures marks a significant expansion in its product lineup. These new futures products are designed to provide investors and traders with innovative mechanisms to manage risk, navigate price fluctuations, and engage more comprehensively in the cryptocurrency market.

This step is in line with Coinbase’s strategy to diversify its portfolio and improve the trading experience for its users by requiring less capital upfront.

Strategic Partnerships

In addition to expanding its product offerings, Coinbase has partnered with Stripe to enhance its service and on-chain adoption. This partnership focuses on integrating USDC on Stripe’s Base platform to accelerate transactions and reduce service costs. The collaboration aims to expedite transactions in over 150 countries and simplify the fiat-to-crypto conversion process for U.S. customers.

Beyond regulatory compliance, Coinbase’s strategy is designed to attract more institutional investors by providing regulated trading options. With the SEC’s stance on risk assets still unclear, the CFTC’s approval could open the futures market to a broader audience, increasing participation and liquidity.

Market Impact

As of the time of reporting, AVA had the largest market capitalization among the proposed altcoins, standing at $11.1 billion, with its trading price showing a slight increase. Despite its lower price point, SHIB remains a popular choice among investors, with a market cap of $10.1 billion, reflecting diverse interest in the crypto market. SHIB fell by 3.7% to $0.00002 per token in the last 24 hours.

Other altcoins also experienced declines, with LINK down 4.3% to $13.7 and DOT falling 1.9% to $6.19.

By expanding its product offerings and enhancing compliance, Coinbase aims to solidify its position in the cryptocurrency market, making it more accessible and appealing to a wider range of investors.

Confused about crypto futures? Check out our explainer article: Discover What Futures Trading Strategies You Can Use in 2024 (Crypto Edition)