On November 13th, Coinbase International Exchange announced upcoming support for perpetual futures contracts linked to Solana and Avalanche on both its standard platform and Coinbase Advanced.
Furthermore, if the stipulated liquidity conditions are met, the markets for SOL-PERP and AVAX-PERP on Coinbase are scheduled to go live precisely at 4 PM UTC on the 14th day of November.
Returning to the month of August, Coinbase made a formal declaration. It announced its triumphant approval by the National Futures Association (NFA).
Coinbase’s Regulatory Triumph: A Milestone for Cryptocurrency Clarity in the U.S
In August, Coinbase reported its approval by the National Futures Association (NFA), a recognized self-regulatory body overseen by the Commodity Futures Trading Commission (CFTC). This accreditation grants Coinbase the status of an officially registered Futures Commission Merchant (FCM).
As a direct consequence, on the 16th day of August, users of Coinbase within the United States gained access. This access was granted to federally regulated cryptocurrency derivatives, complete with margin capabilities.
Brian Armstrong, the Chief Executive Officer of Coinbase, celebrated this development. He hailed it as a “significant milestone for regulatory clarity within the U.S. cryptocurrency landscape.”
Coinbase’s Regulatory Wins: Impact on Perpetual Futures Markets
Finally, on the 19th day of October, Coinbase secured regulatory approval. This approval allows the facilitation of perpetual futures trading for eligible retail customers outside the United States.
In a post on X, Linda P. Jones, the esteemed author of the book “3 Steps to Quantum Wealth,” outlined the implications of this approval. The focus was on XRP futures trading on the cryptocurrency exchange at that particular juncture.
According to Jones, three profound implications emerged from this development. These implications ultimately led to a bullish trajectory for XRP. Jones further elaborated on these significant points.
Wall Street firms, mostly hedge funds, are the firms who trade futures contracts. This is about institutional money coming into the trade, it is not about retail investors. This is bullish for XRP because it means the large wave of institutional money is close to coming in and they want to trade on the volatility.
The demand for perpetual futures contracts in the cryptocurrency market has surged. As of November 10th, according to data from Laevitas, the global volume for perpetual contracts on centralized exchanges (CEX) reached an impressive $195.3 billion.
Binance, a prominent player in the cryptocurrency exchange arena, secured the top position in terms of volume. Following closely behind, the OKX exchange also made significant strides.
Bitcoin Perpetual Futures: Analytical Peaks by Kaiko’s Conor Ryder
Conor Ryder, a research analyst at Kaiko, shared insights with Bloomberg. He highlighted that the ratio of Bitcoin perpetual to spot volume currently stands at its zenith, a pinnacle not reached in nearly two years.
Furthermore, Ryder appended that these perpetual contracts, colloquially referred to as “perps” in industry parlance, eschew the constraints of expiration dates. Consequently, they have garnered substantial favor among traders.