Coinbase to launch Solana and Avalanche futures amid FTX fallout
Investing.com | Editor Pollock Mondal
Published Nov 13, 2023 04:32AM ET
In a strategic pivot following the recent collapse of FTX, Coinbase (NASDAQ:COIN) Global has announced its plan to list Solana (SOL) and Avalanche (AVAX) futures. The new offerings, SOL-PERP and AVAX-PERP, are scheduled to go live on Tuesday, targeting institutional clients outside the United States. This decision marks a significant shift for the cryptocurrency exchange as it seeks to diversify revenue streams beyond spot trading and navigate the regulatory landscape more effectively.
Coinbase's introduction of these futures markets is a direct response to the changing dynamics in the crypto industry precipitated by the downfall of FTX. By expanding into derivatives trading with SOL-PERP and AVAX-PERP futures, Coinbase is positioning itself to capture demand from institutional investors looking for regulated venues to trade digital asset derivatives.
The launch of these futures contracts is contingent upon liquidity conditions and is part of a broader strategy by Coinbase to reduce its dependence on spot trading revenue. This move also reflects an effort to mitigate regulatory risks, as the company adapts to an environment where oversight of crypto assets is becoming increasingly stringent.
The decision by Coinbase underscores the ongoing shifts in the cryptocurrency market, where exchanges are rapidly adapting their business models in the wake of high-profile disruptions. By offering futures contracts for Solana and Avalanche, Coinbase aims to provide institutional users with more tools for risk management and investment, signaling a maturation of the crypto derivatives space.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.