Coinbase Futures has submitted a disclosure to the CFTC to enlist perpetual futures contracts for SHIB, set to be settled monthly in cash, with plans for listing on July 15. Additionally, applications have been filed for perpetual futures contracts for various other altcoins such as Chainlink, Avalanche, Stellar Lumen’s XLM, and Polkadot.
By submitting an application to the CFTC, the American exchange Coinbase has secured a notable victory for Shiba Inu, paving the way for the listing of SHIB futures contracts later this month. Through its CFTC-regulated subsidiary Coinbase Derivatives, the exchange initiated the listing process for the 1k Shib Futures contract, set for a July 15 launch. Each contract, valued at ten million SHIB, will be settled in cash on a monthly basis. The minimum tick size will be $0.00001 per Shiba Inu, with a minimum tick value of $0.10 per contract.
Coinbase’s expansion includes the introduction of futures contracts for Shiba Inu, Avalanche, and other altcoins, allowing users to manage risks and speculate on price movements with reduced upfront capital. Upon receiving CFTC approval, these new offerings are anticipated to debut post-July 15, enhancing their financial product range.
In its application, Coinbase detailed that the final settlement price for expiring contracts would be determined by the Market Vector benchmark reference rate at 4:00 PM London time. This index value will be calculated using a 2-hour settlement window comprising 40 3-minute intervals. The settlement process involves aggregating all trades and volume from the constituent exchange during each interval, calculating a volume-weighted median price, and deriving the settlement based on a simple average of the 40 volume-weighted median prices.
Addressing the volatility inherent in SHIB, considered a meme coin strongly influenced by its community and priced significantly lower than its counterparts, Coinbase expressed confidence in its ability to manage volatility effectively. The exchange highlighted its experience in handling prolonged volatility and unforeseen spikes in existing products without disruptions to the market, maintaining continuous liquidity through features like price banding, daily price limits, kill switches, exposure limits, and margin levels.
Should the CFTC grant approval, Coinbase will be the first to offer margined futures contracts for SHIB in the U.S., positioning Coinbase Derivatives at the forefront of market accessibility. This development marks a significant milestone for Shiba Inu, believed by its holders to potentially trigger a price rally. At present, SHIB is trading at $0.00001716, registering a modest 1% gain over the past day.
While a brief rally at the beginning of the last week fizzled out quickly, SHIB has maintained a sideways trend for the majority of the preceding seven days, with an overall gain of just 1.7%. Beyond its impact on price, the SHIB community envisions the new margined futures contracts as a precursor to a SHIB spot ETF, following the successful introduction of spot ETFs for Bitcoin this year. As Ethereum moves closer to joining this trend, the possibility of future developments in the crypto space remains open, with SHIB holders optimistic about its prospects relative to other cryptocurrencies.
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