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Time no longer has a grip on the crypto markets. Coinbase has just broken the shackles of fixed hours by announcing 24/7 trading of futures contracts on bitcoin and ethereum for American residents. A revolution that, beyond simplifying access, redefines the rules of the game in the face of fierce competition. But behind this boldness lie subtle stakes: regulation, technical innovation, and the battle to dominate an exploding derivatives market.
Unlimited Bitcoin: When Coinbase Reinvents Liquidity
A market that never blinks? This is now a reality for American traders. By launching perpetual futures contracts on bitcoin and Ethereum, Coinbase eliminates the programmed obsolescence of traditional contracts.
No more binding expiration dates, no more anxiety-inducing calculations to anticipate closures. An unprecedented fluidity, designed to match the frantic pace of cryptos, where every second counts.
However, this freedom comes at a price: regulatory complexity. The perpetuals, these contracts without maturity, have long been the preserve of offshore platforms, deemed too risky by American authorities.
Coinbase is taking a bold gamble here: collaborating with the CFTC (Commodity Futures Trading Commission) to clarify the rules. A delicate dance between innovation and compliance, where every move is scrutinized. If the balance is found, America could finally catch up to platforms like Binance or Bybit, dominant outside its borders.
The numbers speak for themselves. According to AlphaPoint, the crypto derivatives market reached $1.3 trillion in monthly volume in September 2023, smashing the spot market. By opening the floodgates to non-stop trading, Coinbase is not only responding to a latent demand — it captures a titanic flow, long ignored due to fears of regulatory wrath.
CME, Robinhood: The War of Contracts Intensifies
In the arena of derivatives, Coinbase is not alone. Facing it is CME Group, a historical giant, that boasts an average daily volume of $10 billion on its crypto contracts — but with a surprising limitation: a weekly break on Sundays. An anachronism in the era of algorithms and trading robots. However, CME remains a formidable opponent, with annual revenues exceeding $6 billion and unmatched institutional credibility.
Robinhood, the other rival, bets on simplicity. The platform, known for its public-friendly approach, unveiled its own bitcoin and Ethereum futures contract projects in January. A predictable move, but one that underscores a trend: the democratization of sophisticated instruments.
Coinbase, on the other hand, bets on expertise. Its dedicated subsidiary, Coinbase Financial Markets, is already offering derivatives in the United States. By extending its hours, it appeals to professionals — those for whom the New York night is the Asian day.
But the real battle is fought elsewhere. It opposes two visions: that of a mature crypto market, integrated into traditional standards, against that of a rebellious ecosystem, pushing the limits. Coinbase embodies this duality. By working hand-in-hand with regulators, it legitimizes perpetual contracts without denying the disruptive DNA of cryptos. A fragile balance, where each decision can either reinforce investor confidence or awaken their distrust, especially in a context of bitcoin and dollar retreat.
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Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
