"European traders have historically relied on unregulated offshore platforms for crypto derivatives, navigating regulatory gaps and exposure to operational risks. Coinbase's launch provides a regulated alternative, offering cash-settled futures on bitcoin and crypto-linked equity indices, including the "Mag7 + Crypto Equity Index Futures," which blend exposure to major technology companies, Coinbase stock, and spot crypto exchange-traded funds."
"The platform offers two main types of futures contracts. Perpetual-style contracts carry five-year expiries, use an hourly funding mechanism to align prices with the underlying assets, and settle daily. Dated contracts have monthly or quarterly expirations, are marked to market daily, and settle in cash at expiry if held to maturity."
"Traders can use up to 10x leverage on select contracts, including Bitcoin, Ethereum, and certain equity indices, while other products offer leverage in the 4x to 5x range. Eligible users must pass trading experience checks and KYC verification before funding their accounts with euros or USDC to access futures trading."
Coinbase introduced futures contracts to traders across 26 European countries through its MiFID-registered entity, providing regulated derivatives directly in the region for the first time. The offering includes cash-settled futures on bitcoin and crypto-linked equity indices, accessible via Coinbase Advanced. Two contract types are available: perpetual-style contracts with five-year expiries and daily settlement, and dated contracts with monthly or quarterly expirations. Traders can access leverage ranging from 4x to 10x on select products, with trading fees starting at 0.02% per contract. This launch addresses the historical reliance of European traders on unregulated offshore platforms, offering compliance with EU financial regulations and reduced operational risks.
Read at Bitcoin Magazine
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