Coinbase set for first equity index futures - FOW Data

US-regulated Coinbase plans to launch on September 22 the Mag7 + Crypto equity index future, designed to offer investors exposure to traditional equities, through the Mag7 stocks, and cryptocurrency exchange-traded funds (ETFs).

Coinbase said on its website: “We’re diversifying our US derivatives platform beyond single-asset offerings for the first time, launching a new equity index product that provides thematic exposure to a wide range of innovation and growth assets.”

The future is based on the Mag7 + Crypto index, a hybrid made up of Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta and Tesla stocks as well as Coinbase stock and the iShares Bitcoin Trust ETF and the iShares Ethereum Trust ETF.

The ten components represent 10% of the index which will be rebalanced quarterly as prices move, the firm said.

Coinbase, which completed last month its $2.9bn (£2.1bn) acquisition of options specialist Deribit, has enjoyed stellar growth in recent months, reporting last month 39.6 million lots traded, up from 22.3 million in July and 11.3 million contracts in June, according to FOW data.

Coinbase launched in July on its US regulated exchange the first in a series of what it called “perpetual style” futures, with expiries of five years.

The exchange trades small oil and gas, and gold and silver futures but its cryptocurrency futures are most popular, led by Bitcoin and Ethereum nano futures.

Elsewhere this week, the main US options exchanges are launching three single stock options and Taiwan Futures Exchange is making available on Tuesday an options contract based on a Taiwanese semiconductor firm, according to FOW Data.