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Coinbase adds Dogecoin, Litecoin, and Bitcoin Cash to the futures trading on its platform

Coinbase Derivatives, the dedicated section of the exchange for derivatives trading, has announced that on April 1st it will open futures trading for the cryptocurrencies Dogecoin, Litecoin, and Bitcoin Cash.

To do this, he had to submit a self-certification to the CFTC in which he certifies the registration of the new futures contracts, complying with all the terms required by the agency.

Coinbase has also justified to its community the listing of Dogecoin by saying that the memecoin now plays a central role in the cryptocurrency landscape, being one of the most historical assets in the industry.

All the details below.

Coinbase opens up futures trading for Dogecoin, Litecoin, and Bitcoin Cash

In 11 days, unless it’s an April Fool’s joke, Coinbase Derivatives will list the cryptocurrencies Dogecoin, Litecoin, and Bitcoin Cash on their platform in the futures trading section.

On paper, it doesn’t seem like a programmed joke from the exchange, especially considering that to announce the inclusion of the 3 coins in leveraged trading, it wrote several letters to the secretary of the Commodities Futures Trading Commission (CFTC) Christopher Kirkpatrick.

In these documents the intention to list the so-called cash-settled monthly futures contracts has been put in writing, along with details on contract sizes, settlement methods, and structure.

In particular, Dogecoin, Litecoin, and Bitcoin Cash have been presented to the CFTC through the self-certification method, pursuant to regulation 40.2(a) of the same US regulatory body that allows this kind of declaration in the derivatives field.

The procedure allows to introduce new investment offers within the broker, without having to wait for the official confirmation from the agency, provided that the platform confirms the adherence of the product to the Commodity Exchange Act regulations and CFTC regulations.

coinbase dogecoin litecoin futures
coinbase dogecoin litecoin futures

The launch of the 3 cryptocurrencies in the derivatives market on April 1st highlights Coinbase’s efforts to offer its customers the widest range of investment options, with a multitude of different products and opportunities with ample underlying liquidity.

Furthermore, the move by the exchange to add Dogecoin, Bitcoin Cash, and Litecoin to its suite of trading pairs in the Derivatives sector could be seen as a dig at the Securities and Exchange Commission (SEC) after the rejection of the spot ETF on Ethereum.

As James Seyffart, ETF analyst at Bloomberg, also points out, the 3 cryptos have the same consensus mechanism (Proof-of-Work) as Bitcoin.

Coinbase could leverage this concept to seek approval for an exchange traded fund of these securities from US regulated markets.

These are the words of the expert in a recent post on X:

“This is interesting… I wonder if the SEC opposes the classification of these ‘commodity futures’ compared to ‘stock futures’. Considering their origins from Bitcoin, labeling them as securities would be challenging, especially after the approval of the spot #Bitcoin ETF. The selection of Coinbase could be strategic.”

Meanwhile Coinbase explains to its community the reason for announcing the launch of futures trading for Dogecoin, which would be linked to the popularity and importance of the currency in the cryptocurrency sector.

The memecoin represents, as supported by the exchange, a pillar in the world of digital currencies that has gone from a simple internet joke to being an asset that capitalizes over 22 billion dollars.

Immediately after the news DOGE has grown by 15% in the last 24 hours. In the same period LTC shows an increase of 5.6% and Bitcoin Cash of 15.7%.

Market trend of COIN stock

While Coinbase strengthens its position in the futures markets preparing to add trading pairs for Dogecoin, Litecoin, and Bitcoin CSH starting from April 1st, the COIN stock is preparing for another bullish leg up.

After a brief phase of correction that involved the price action of the stock throughout last week, now the demand seems to be ready to break through the supply wall.

Yesterday, Coinbase’s stock recorded a great +11.8%, bringing its quotes to 256.88 dollars and recovering much of the lost ground in the previous days.

Today the pre-market seems to indicate a continuation of the rise for the stock, which already shows a higher price compared to yesterday’s closing price, with prices indicating a value of 261.35 dollars.

The volumes are good and in case of breaking the $270 level, COIN could easily go in search of $300 and then attempt to break the psychological resistance.

If bulls were to be rejected instead, attention should be paid to the support at $220, and then to the more important one at $200, where a breakdown could put an end to hopes of a pump in the short term.

The future trend of the asset will depend mainly on the fate of Bitcoin and on the data related to the flows of bitcoin spot ETFs that will emerge day by day at the US stock exchanges.

We remind you that Coinbase’s stock is up 57% since the beginning of the year and 217% since March 2023.

Coinbase COIN stock price chart
Alessandro Adami
Alessandro Adami
Graduated in "Information, Media and Advertising", for over 4 years interested in the cryptocurrency and blockchain space. Co-Founder of Tokenparty, community active in spreading crypto-enthusiasm. Co-founder of Legal Hackers Civitanova marche. Information technology consultant. Ethereum Fan Boy and supporter of Chainlink oracles, strongly believes that smart contracts will be central in the development of society.