Coinbase Launches 24/7 Crypto Futures Trading, Acquires Deribit for $2.9 Billion

Coinbase has made a significant move in the cryptocurrency market with the official launch of 24/7 trading for Bitcoin (BTC) and Ethereum (ETH) futures. This initiative marks the first time a U.S. CFTC-regulated exchange has offered continuous crypto futures trading, allowing traders to engage in transactions around the clock, including nights, weekends, and holidays. This service is provided through Coinbase Derivatives LLC, addressing the previous limitation of CFTC-regulated derivatives being restricted to weekday sessions. This strategic move aligns with the global crypto market's nonstop pace, enabling traders to respond instantly to volatile price shifts and providing a more seamless trading experience.

Coinbase's offering supports both institutional-grade and retail-sized contracts, with clearing handled by Nodal Clear to ensure compliance and transparency. The launch is backed by key partnerships, including market maker Virtu Financial and several Futures Commission Merchants such as ABN AMRO, Wedbush Securities, and Coinbase Financial Markets. Coinbase Financial Markets CEO Andy Sears described the launch as a "game-changer," emphasizing the platform's commitment to providing frictionless access through Coinbase Advanced.

Coinbase's derivatives strategy has been bolstered by its $2.9 billion acquisition of crypto options exchange Deribit, announced just a day before the 24/7 futures launch. The acquisition includes $700 million in cash and 11 million Coinbase shares. The transaction, expected to be finalized by year-end pending regulatory approvals, adds Deribit’s options and perpetuals products to Coinbase’s growing stable, creating a capital-efficient platform for spot, futures, perpetuals, and options trading. This acquisition is a significant investment by Coinbase, reflecting its confidence in the future of crypto derivatives and its commitment to expanding its offerings and solidifying its position as a dominant player in the digital asset space.

Further ahead, Coinbase plans to unveil U.S.-regulated perpetual-style futures—expiry-free contracts long popular on offshore exchanges. Such offerings position Coinbase to conquer a flourishing market, with April alone seeing significant BTC futures volume. This move underscores Coinbase's commitment to providing a robust and reliable platform for crypto derivatives trading, attracting more institutional investors and traders who seek regulated and secure platforms for their crypto investments. The integration of Deribit's platform into Coinbase's ecosystem is expected to be seamless, with both companies sharing a common vision of advancing the crypto industry. This strategic move is a clear indication of Coinbase's long-term strategy to dominate the crypto derivatives space and drive the adoption of digital assets.