Coinbase Introduces Perpetual Futures to Non-US Clients
Coinbase is expanding its services by offering perpetual futures (perps) to Coinbase Advance clients in non-US jurisdictions. These perps will be settled in USDC and will include contracts for Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP. Traders can conveniently trade derivatives and cryptocurrencies from a single web interface and automate trades using APIs. Initially, Coinbase will charge a 0% maker fee and a 0.03% taker fee.
Coinbase Expands Amid US Struggles
In addition to launching perps, Coinbase is nurturing crypto talent from its regional office in Germany. With its current BaFin license, Coinbase plans to operate across the European Union when the new Markets in Crypto-Assets bill goes live in 2024. The exchange aims to broaden operations in several countries including Ireland, Benelux and Nordics, Spain, and Italy. This expansion comes as Coinbase experienced a 50% decline in trading volume during Q3, the lowest since Q3 2020.
Futures Traders Should Exercise Caution
The introduction of perps by Coinbase coincides with a critical time for the crypto industry. Ongoing conflicts in the Middle East may hinder the passage of anti-crypto legislation aimed at combating money laundering, potentially impacting exchange volumes. Additionally, investors heavily involved in futures trading during bear markets are susceptible to significant price movements that can result in massive liquidations. Experts anticipate that the approval of US spot Bitcoin exchange-traded funds and upcoming Bitcoin halvings could significantly impact crypto prices.
Hot Take: Coinbase’s Expansion and Product Launches
Coinbase continues to expand its global presence by introducing new products like perpetual futures. Despite challenges in the US, Coinbase is actively pursuing opportunities in non-US jurisdictions. With its expansion into Germany and plans to operate across the European Union, Coinbase aims to solidify its position as a leading cryptocurrency exchange. However, traders should exercise caution when engaging in futures trading due to potential price volatility. The approval of US spot Bitcoin exchange-traded funds and upcoming Bitcoin halvings are anticipated to have a significant impact on the crypto market.
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