Regulators just unlocked crypto's hottest product for U.S. traders — long Coinbase before the volume flood
U.S. regulators just cleared the way for crypto perpetual futures — a hugely popular trading product that until now only existed on offshore exchanges. Coinbase is among the first platforms allowed to offer it.
Idea
Perpetual futures contracts are the single most-traded crypto product in the world — responsible for trillions in volume — but Americans have been locked out of them on regulated exchanges. The CFTC just changed that by giving Coinbase and others the green light. This is a massive new revenue stream for Coinbase: every trade on these contracts generates fees, and bringing this product onshore to a trusted platform should attract huge inflows from both retail and institutional traders. When a company lands a regulatory monopoly on a high-demand product, the stock usually moves fast. The stock should pop as the market digests how much this adds to Coinbase's earnings potential.