Cryptocurrency exchange Coinbase received approval to list crypto futures in the U.S., the company announced early Wednesday. COIN stock jumped in premarket trade.
Coinbase Financial Markets secured approval from the National Futures Association (NFA) to operate a Futures Commission Merchant (FCM). FCMs allow customers to place orders to buy and sell futures contracts, options and swaps.
The NFA acts as a self-regulatory organization and is a designated federal derivatives regulator for the Commodity Futures Trading Commission (CFTC).
"We believe this is a watershed moment to be able to bring regulated crypto products to U.S. customers," Coinbase wrote in the announcement. The company first applied for approval in September 2021.
Now, U.S. customers will be eligible to access regulated derivatives products through Coinbase Financial Markets.
The global crypto derivatives market represents roughly 75% of crypto trading worldwide, according to Coinbase.
Elsewhere, bitcoin ETF applications, including Cathie Wood's ARK Invest firm, face approval delays from the SEC.
COIN Stock
COIN stock popped 4.5% to 82.81 at the open before falling back. Shares fell 2% to 79.18 on Tuesday, coming down to the 50-day line.
Coinbase rallied nearly 124% in 2023 through Tuesday. But COIN stock pulled back the past five weeks following a mid-July breakout, undercutting the 87.63 buy point. Meanwhile, the major cryptos retreated from 2023 highs.
Bitcoin hovered near $29,000 early Wednesday. BTC briefly reclaimed its $30,000 level on Aug. 9 and struggled to break above $30,000 the past three weeks. It's below its 2023 high of $31,809 from July 13. The world's largest cryptocurrency has rebounded 75.3% so far this year.
Ethereum dipped below $1,830 Wednesday morning, sliding from its overnight high of $1,840. ETH has traded below its $1,900 level since July 23. Ethereum hit $2,139 on April 16 — its highest level since May 2022 — following its Shanghai-market upgrade to a proof-of-stake network on April 13. The No. 2 crypto soared 52.3% year-to-date.
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