Coinbase Derivatives has announced the upcoming availability of new futures contracts for oil and gold, starting from June 3rd. The purpose of these contracts is to offer enhanced trading opportunities in traditional markets. Coinbase Derivatives, which is licensed by the CFTC, already allows users to purchase futures for various cryptocurrencies such as bitcoin, ether, bitcoin cash, litecoin, and dogecoin. The new contracts, which are denominated in 10 barrels of oil and 1 troy ounce of gold, aim to provide better trading options in conventional markets.
In March, Coinbase hinted that it would introduce monthly cash-settled futures contracts for dogecoin, litecoin, and bitcoin cash. Alesia Haas, the Chief Financial Officer, emphasized the company’s focus on generating liquidity, expanding market share, and solidifying its position in the market. Coinbase has already added 15 perpetual futures contracts to its derivatives offerings this year.
The impending launch of oil and gold futures is expected to make Coinbase Derivatives more attractive to traders. Additionally, traditional financial institutions such as BlackRock, Fidelity, and VanEck have started venturing into cryptocurrency trading in traditional financial markets through the introduction of exchange-traded funds.
While Coinbase is not the first cryptocurrency exchange to offer commodities futures, it follows in the footsteps of FTX, which had established futures markets for various highly traded commodities before its bankruptcy in November 2022.
In other crypto news, the Bitcoin Policy Institute has recently launched a non-custodial fund amidst increased scrutiny and regulation in the industry.