Coinbase Seeks CFTC Approval for Solana, Hedera Futures Listing

Coinbase is aiming to introduce Solana and Hedera futures contracts by early 2025, pending regulatory approval. This move seeks to diversify their offerings and boost market liquidity for these cryptocurrencies.

What are Futures, Anyway?

Okay, before we get too far ahead, let’s talk about what a “futures contract” even is. Think of it like a bet on where the price of something will be in the future. Instead of buying the actual cryptocurrency (like Solana or Hedera), you’re buying a contract that says you’ll either buy or sell that crypto at a certain price on a specific date later on. The source explained this allows traders to speculate on the price movements without actually owning the tokens themselves. It’s all about predicting which way prices might go! Coinbase wants to make these new contracts available by February 18th, 2025 as long as they get the green light from regulators first.

Coinbase’s Plan and What it Means

The source indicated that Coinbase isn’t just throwing these contracts out there randomly. They’ve got a plan to make trading them as smooth as possible. For Solana, they’re proposing two types of futures: “Standard” and “Nano.” The Standard contract will be for 100 SOL tokens, which at a price of $250 per SOL would be around $25,000 per contract. The Nano version is smaller, with only 5 SOL tokens – about $1,250 if the price holds steady. They are also setting limits on how many contracts people can hold to keep things stable; for example, you can’t hold more than 3,500 Standard Solana contracts.

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For Hedera, the futures contract (HED) will be for 5,000 HBAR tokens. At a price of $0.30 per HBAR, that’s about $7.5 million per contract! There’s a limit of 25 million HBAR for this one. The source revealed that Coinbase will also have a “Crypto Market Maker Program” to ensure there are always enough buyers and sellers, making trading smoother and easier for everyone. Basically, they want to make sure the market is liquid, which means you can buy or sell without huge price swings.

So, why do this? Well, Coinbase is trying to offer more options to their users and also respond to the increasing demand for regulated crypto futures. It allows more people to get involved in these markets, even if they don’t want to buy the actual coins, helping them manage risk while still participating. It’s all about making crypto trading more accessible and diverse. Pretty interesting stuff, right?

Source: Tech | Bitcoinethereumnews.com

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