Coinbase Announces ‘Perpetual-Style’ Futures In The US, COIN Stock Rallies

Coinbase has revealed plans to fill a gap in the US derivatives market by launching a ‘perpetual-style’ futures product for Bitcoin and Ethereum. This product will roll out on July 21. Meanwhile, the COIN stock has rallied to a new four-year high amid this announcement.

Coinbase To Launch ‘Perpetual-Style’ Futures Product On July 21

In a blog post, the crypto exchange announced that its derivatives arm will launch US ‘Perpetual-Style’ futures on July 21. This future product will closely track spot prices, offer leverage to customers, and be completely compliant with CFTC regulations.

Coinbase noted that this will be one of the first products of its kind in the US, and it aims to fill a critical gap in the country’s derivatives market, seeing as a perpetual futures market isn’t yet prominent. The top crypto exchange further revealed that the futures product will mirror the functionality of global perpetual futures, complying with US regulations.

With this, the company aims to eliminate the need for users to access these perpetual futures through offshore exchanges. It also seeks to break into this market, as perpetual futures reportedly account for 90% of total crypto trading activity internationally.

Coinbase plans to launch two contracts for trade on July 21. This includes the nano Bitcoin Perpetual-Style Futures and nano Ether Perpetual-Style Futures. Furthermore, the exchange stated that these contracts will provide regulated exposure to the crypto market while offering flexibility in position sizing and capital efficiency.

In an X post, the exchange’s CEO Brian Armstrong also commented on this new futures products, highlighting their features. He noted that there is no quarterly expiration, and that they will be available 24/7 with spot price tracking while being fully CFTC complaint.

This development comes just days after the Coinbase announced it has secured a MiCA license in Luxembourg. Now, the company will be able to offer its crypto services to 450 million users across all 27 EU member states.

COIN Stock Rallies

Meanwhile, the COIN stock has rallied amid this latest announcement. TradingView data shows that the Coinbase stock is currently trading at around $366, up over 3% in today’s trading session. The stock is up 20% in the last five days and 42% year-to-date (YTD).

As CoinGape reported, Bernstein analysts just raised their targets for the Coinbase stock from $310 to $510. Furthermore, they outlined factors such as the stablecoin bill, the exchange’s dominance in the US, and its ownership of the Ethereum layer-2 Base as potential catalysts for this surge.

Meanwhile, the COIN stock has hit a four-year high following its latest rally. The stock is still short of its all-time high of $429, which it reached on its debut back in 2021. However, it has now surpassed its previous highest close of $357.