Coinbase, the reputable digital currency exchange, is in the process of obtaining regulatory clearance to introduce futures contracts for Cardano (ADA) and Natural Gas (NGS). This move aims to diversify its present offerings in both the crypto derivatives and energy markets.
On Friday, Coinbase Derivatives, the futures exchange arm of Coinbase, announced that it had filed the necessary paperwork with the Commodity Futures Trading Commission (CFTC) to self-certify futures for ADA and NGS.
Self-certification with the CFTC enables Coinbase to confirm regulatory compliance for futures contracts, thus accelerating their introduction unless the CFTC voices any concerns. If approved, these innovative futures contracts are projected to debut on March 31.
This development follows the recent unveiling of Solana (SOL) and Hedera (HBAR) futures contracts by Coinbase, underscoring the company’s ongoing commitment to offering traders a regulated platform that caters to both crypto and traditional futures trading.
As one of the leading blockchain platforms, Cardano is acclaimed for its emphasis on scalability, security, and sustainability. Its growing adoption in the DeFi, NFTs, and enterprise blockchain solutions sectors makes it an attractive addition to the Coinbase futures portfolio.
The ADA futures contracts will provide traders with an opportunity to benefit from Cardano’s price fluctuations without the need to own the underlying asset, thus facilitating sophisticated risk management and leveraged trading techniques.
In response to Coinbase’s announcement, ADA experienced a 2% surge, reaching $0.75 according to CoinGecko. The introduction of Natural Gas futures would place Coinbase in a competitive position against traditional futures exchanges in the energy sector, where the commodity plays a pivotal role in worldwide markets and economic stability.
While the SEC has exhibited caution regarding the approval of crypto ETFs, the advent of futures contracts may assuage some concerns by offering a regulated structure for price discovery and risk management. This could potentially sway the SEC towards authorizing ETFs, particularly if futures trading evidences market stability.
Currently, Grayscale Investments is the sole manager that has filed for a Cardano spot ETF through NYSE Arca, which aims to list and trade shares of the Grayscale Cardano Trust on the exchange. However, the SEC has deferred its decision about the proposed Grayscale’s spot ADA ETF, extending the review period for other crypto ETFs as well.
