TLDR
- Coinbase Derivatives is launching the first CFTC-regulated 24/7 Bitcoin and Ethereum futures trading in the U.S.
- The company is also developing perpetual-style futures contracts with no fixed expiration dates
- This move aligns U.S. markets with global crypto trading that operates continuously
- The crypto derivatives market represents about 75% of total crypto trading volume and is projected to grow from $1.5 billion in 2024 to $5 billion by 2032
- Traditional financial markets are also exploring continuous trading, with Nasdaq planning to introduce 24-hour stock trading by 2026
Coinbase Derivatives is set to launch the first CFTC-regulated 24/7 Bitcoin and Ethereum futures trading in the United States. The move represents a major step forward for U.S. crypto derivatives markets, which until now have operated on fixed trading schedules unlike their global counterparts.
The new offering will allow traders to respond to market movements at any time. This eliminates the limitations of traditional market hours that have hindered U.S.-based crypto traders.
Beyond continuous trading, Coinbase is also developing perpetual-style futures contracts. These contracts have no fixed expiration dates, allowing traders to maintain positions indefinitely.
Greg Tusar, Coinbase’s VP of Institutional Product, explained the rationale behind the move. “Crypto markets never sleep, and traders need the ability to manage risk and seize opportunities in real time,” he said.
The initiative comes in response to strong demand from crypto-native traders. It aims to bring U.S. regulated markets in line with the global crypto economy.
Derivatives account for over 75% of total crypto trading volume
Derivatives play a major role in crypto trading worldwide. They account for over 75% of all total crypto trading volume according to industry data.
The crypto derivatives market is expected to see strong growth in coming years. Projections indicate an increase from $1.5 billion in 2024 to $5 billion by 2032.
Much of the derivatives trading activity has historically taken place on offshore platforms. Exchanges like Binance have offered perpetual futures and 24/7 trading beyond U.S. regulatory reach.
A compliant alternative for U.S. based traders
Coinbase’s move creates a compliant alternative for U.S.-based traders. They will no longer need to use offshore exchanges to access continuous trading.
Recent events have highlighted the limitations of fixed trading hours. When Donald Trump announced a proposed U.S. Crypto Reserve on a Sunday, crypto traders could react instantly while traditional market participants had to wait until Monday.
The push toward continuous trading extends beyond cryptocurrency markets. Nasdaq has announced plans to introduce 24-hour stock trading by 2026, citing growing demand for always-on markets.
Nasdaq President Tal Cohen expressed enthusiasm about the future of continuous trading. “We are excited to share that Nasdaq has begun engaging with regulators, market participants and other key stakeholders, with a view of enabling 24-hour trading five days a week on the Nasdaq Stock Market,” he stated.
Robinhood CEO Vlad Tenev has highlighted blockchain technology’s role in enabling seamless round-the-clock trading. He contrasted this with legacy financial infrastructure that relies on set trading windows.
“24/7 is going to be tough with traditional infrastructure, but if we think about tokenization, that’s one of the advantages,” Tenev noted. “Blockchains run 24/7—it’s just software.”
Some global markets have already seen benefits from more continuous trading sessions. The Taiwan Stock Exchange reportedly saw trading volumes double after shifting to a more continuous trading model.
Coinbase will offer different contract sizes for retail & institutions
Coinbase Derivatives’ new offering includes different contract sizes to accommodate various types of traders. Whether retail traders or institutions, the nano and large-sized contracts will align with broad trading strategies.
The company is partnering with Nodal Clear to ensure CFTC-regulated clearing. Coinbase Financial Markets will provide market access from day one of the launch.
Coinbase has been working actively with the CFTC, partners, and market participants to finalize the design of their perpetual-style contracts. They aim to ensure these products meet both regulatory requirements and client needs.
The company has called for other market participants to join in building the next generation of global crypto derivatives. “The next evolution of U.S. markets starts now,” according to Coinbase’s announcement.
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