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US crypto users now have a regulated platform to trade crypto derivatives

The approval of Coinbase Global adds to the wind of positive change blowing across the US crypto space

Shashank Bhardwaj
Published: Aug 29, 2023 05:01:11 PM IST
Updated: Aug 29, 2023 05:24:54 PM IST

US crypto users now have a regulated platform to trade crypto derivativesImage: Shutterstock

Crypto derivatives are one of the most popular products to come out of the section of the global financial market that belongs to crypto. While spot trading is still the most popular option for crypto traders, derivatives are not far behind. In fact, crypto options trading volume on the CME or Chicago Mercantile Exchange rose to about $1 billion in July, as per CCData reports.

In the US, crypto derivatives are indeed garnering more and more attention, and now the American crypto enthusiasts have a brand new platform for efficient crypto derivatives trading. This new protocol would be none other than the crypto exchange Coinbase Global.

In a historic development in the US crypto space, Coinbase Global has become the first crypto firm to have the approval to offer crypto futures to the retail customers in the US. The approval came into effect on August 16.

2022 saw a crypto winter like none other, with the Terra-LUNA death spiral, followed by the collapse of FTX, Celsius, and other notable crypto entities, which made many retail and institutional investors withdraw their stakes in the market. This essentially led to both spot and derivatives markets losing ground, and the aftershocks are still felt, with CCData recording the combined crypto spot and derivatives trading volume on US-based centralised crypto exchanges to have fallen by 12 percent in July to $2.36 trillion.

However, now the US investors can hope for Coinbase Global to change the US crypto derivatives scene for the better, by becoming the first regulated crypto firm to bring crypto futures to the country.

The development comes at a time when the US crypto market is looking forward to SEC’s approval on the BlackRock spot ETF, which incidentally names Coinbase as a partner in a surveillance-sharing agreement mandated by the SEC (US Securities and Exchanges Commission). A Bitcoin spot ETF is another revolutionary crypto-based product that would allow the trading of BTC on regulated conventional exchanges and allow a smooth crypto learning curve for traditional investors.

As BlackRock and a host of other applicants hope for approval on their Bitcoin spot ETF proposals, the US seems to be at the cusp of getting a well-regulated crypto market, which would in turn boost crypto on the path to legitimacy across the world.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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