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- Coinbase is seeking CFTC approval to launch Cardano (ADA) and Natural Gas (NGS) futures, expanding its trading options.
- ADA futures could enhance liquidity and adoption, with Cardano’s price increasing 2% following the announcement.
- The introduction of NGS futures signals Coinbase’s entry into the energy market, bridging crypto and traditional commodities.
Coinbase is expanding into crypto and energy markets, seeking CFTC approval to launch Cardano (ADA) and Natural Gas (NGS) futures. If approved, trading begins March 31.
Coinbase Derivatives, the company’s futures exchange, announced that it has submitted papers with the CFTC for self-certification of NGS and ADA futures contracts. With self-certification, Coinbase can declare such future contracts to be in compliance with all relevant regulations. As long as the CFTC does not oppose them, the contracts would be introduced on March 31 so that it would be easy for Coinbase to offer users different options for trade.
This move follows the recent success of Coinbase with the addition of Solana (SOL) and Hedera (HBAR) future contracts as part of the company’s continued push to provide traders with access to traditional and crypto futures in a regulated environment. With the addition of NGS and ADA futures, Coinbase aims to diversify the platform and bring in more traders with interests in energy markets as well as crypto.
Coinbase Adds Cardano Futures, Impacting Crypto Markets
Coinbase is launching ADA futures so traders can make wagers on the price of Cardano without ever owning it. This move makes it easier for Cardano to become more entrenched in DeFi, NFTs, and enterprise blockchain with advanced trading strategies with leverage and risk management.
The introduction of ADA futures contracts was enough to get the market to respond immediately with the price of ADA going up approximately 2% to $0.75 according to CoinGecko statistics. This rise in the price of ADA is a sign of positive market sentiment and positive expectations for the new issue of futures, which should be of interest to retail as well as institutional traders who want to have exposure to Cardano.
Coinbase is not only focusing on cryptocurrencies but also on traditional commodities with the introduction of Natural Gas (NGS) futures contracts. Natural gas is an energy commodity with major influence on global markets and economic stability. With the introduction of NGS futures, Coinbase aims to access part of the energy market and become one of the major players in the global energy market.
Natural Gas futures would allow traders to speculate on the price of natural gas and allow for diversification of the portfolio as well as risk management. This foray into the energy sector is a significant one for Coinbase, which has been known for cryptocurrencies but now wants to close the gap between the traditional energy markets and the new asset class of digital assets.
Cardano Futures Drive SEC Toward ETF Approval
The entry of ADA and NGS futures has the potential to have an impact on crypto regulations and mitigate SEC concerns. Although the SEC has been slow in approving crypto ETFs, regulated futures have the potential to pave the way for broader approval through risk management stability and price discovery.
One of the largest digital asset managers, Grayscale Investments, has already sought listing in Cardano ETF with NYSE Arca. Trading of shares of ADA on regular stock exchanges would be permitted through the proposed Grayscale Cardano Trust. This would be a giant step towards mainstream acceptance of Cardano. SEC has postponed approval of the Grayscale Cardano ETF but more regulatory guidance for future markets can make future approvals of crypto ETFs more likely.
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