Coinbase Derivatives Exchange, formerly Fairx Exchange, announced that it would launch the first cryptocurrency derivatives investment vehicle. It will be pegged at the price of 1/10th of bitcoin. The new “nano bitcoin futures” product will be listed under the ticker “BIT.” Coinbase derivatives are regulated by the Commodity Futures Trading Commission (CFTC).
Coinbase Launches BIT, a Futures Products Tied to 1/100th Bitcoin
Coinbase has launched BIT, a new product that is tied to 1/100th bitcoin (BTC) by the Coinbase Derivatives Exchange. The news follows Coinbase acquiring the derivatives exchange Fairx in mid-January 2022 as the company said it would be leveraging Fairx’s exchange infrastructure.
“This is an important step toward Coinbase ultimately making the derivatives market accessible to our millions of customers through an industry-leading, simplified user experience,” Coinbase said at the time. Coinbase Derivatives Exchange manages the nano-bitcoin futures product. However, retail stock brokers will provide BIT to investors on June 27, 2012.
This news comes after a series of recent changes Coinbase made. For instance, on June 22, the company revamped the Coinbase wallet in order to make “Web3 more accessible and intuitive.” Furthermore, the day after revealing the improved wallet, Coinbase explained that it was combining Coinbase Pro (exchange) with the user’s Coinbase account.
“We plan to merge the features and fee schedule of Coinbase Pro into a new unified Coinbase account that offers our users the choice of an advanced trading experience or the simplicity of the Coinbase consumer app,” Coinbase explained. Coinbase won’t be the only one offering nano-styled crypto futures, as CME Group and the FTX-acquired Ledgerx also provide micro contracts.
CME Group introduced micro Bitcoin and micro Ethereum futures in March. Each product is one-tenth the size of one bitcoin, or ether. FTX US Derivatives (formerly Ledgerx), offers Bitcoin mini futures contracts, and investors can join with as low as 0.01 BTC. Investors can obtain BIT through brokers like Wedbush and Edgeclear as well as Ninjatrader, Ironbeam as well as Tradovate, Stage 5 and Tradovate.
How do you feel about Coinbase Derivatives Exchange’s product BIT Please comment below to let us know your thoughts on this topic.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.