On June 27, the Coinbase Derivatives Exchange (formerly the Fairx Exchange) announced the launch of its first crypto derivatives investment vehicle pegged at 1/100th the value of bitcoin. The new “nanobitcoin futures” product will be listed under the ticker “BIT.” Coin-based derivatives are regulated by the Commodity Futures Trading Commission (CFTC).
Coinbase introduces “BIT,” a futures product linked to 1/100th bitcoin
Coinbase is entering the world of crypto derivatives as Coinbase Derivatives Exchange announced the launch of BIT, a nanobitcoin futures product tied to 1/100 bitcoin (BTC). The news follows Coinbase’s acquisitionof derivatives exchange Fairx in mid-January 2022, and the company will leverage Fairx’s exchange infrastructure.
“This is an important step for Coinbase to finally give our millions of customers access to the derivatives market through an industry-leading simplified user experience,” Coinbase said at the time. The nanobitcoin futures product will be managed by Coinbase Derivatives Exchange, but investors will get their BIT through retail stockbrokers on June 27.
The news follows a number of changes Coinbase has made recently. For example, on June 22, the companyupdated the Coinbase walletto “make Web3 more accessible and intuitive.” Additionally, the day after the improved wallet was unveiled, Coinbase explained that it would integrate Coinbase Pro (the exchange) with users’ Coinbase accounts.
“We will be integrating Coinbase Pro’s features and fee structure into a new unified Coinbase account that gives users the choice of an advanced trading experience or the simplicity of the Coinbase consumer app.” Coinbase explainedis not the only company offering nano-style crypto futures, as CME Group and FTX-acquired Ledgerx also offer micro contracts.
CME Group launched micro bitcoin and micro ether futures at the end of March, each instrument one tenth the size of one bitcoin or ether; FTX US Derivatives (formerly Ledgerx) offers bitcoin mini futures contracts, which investors can participate in for as little as 0.01BTC; they can participate for as little as BTC. As for Coinbase’s nanobitcoin futures, investors will be able to get BIT from brokers such as Wedbush, Edge Clear, Ninja Trader, Ironbeam, Optimus Futures, Tradovate, and Stage 5.
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