Coinbase Global (NASDAQ:COIN) shares are on the rise today after the cryptocurrency exchange received the green signal to introduce regulated crypto futures trading to its U.S. customers.
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After this approval from the National Futures Association (NFA), the company will now act as a futures commission merchant and its eligible customers can access derivative offerings via Coinbase Financial Markets.
The important milestone for the company comes after a wait of nearly two years. It filed the application with NFA in September 2021. The Coinbase website notes that futures trading is ‘coming soon’ and customers can join a waitlist to have early access.
Worldwide crypto derivatives make up nearly 75% of the global crypto volumes and last year, Coinbase acquired the futures exchange FairX, now called the Coinbase Derivatives Exchange.
Since the acquisition, Coinbase has launched nano Bitcoin (BTC-USD) and Ethereum (ETH-USD) futures contracts and has seen a notional volume of $4.7 billion BTC and $2 billion ETH so far this year.
Overall, the Street has a $80.68 consensus price target on Coinbase alongside a Hold consensus rating. While shares of the company have surged nearly 136% so far this year, short interest in the stock still remains elevated at about 13.5% at present.
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