- Coinbase Derivatives seeks approval from the CFTC to introduce Solana and Hedera futures.
- The exchange expects to launch the contracts on February 18, 2025.
Coinbase Derivatives, the US-based cryptocurrency exchange subsidiary, is attempting to gain regulatory approval by filing documents with the Commodity Futures Trading Commission (CFTC). The assets include Solana (SOL) and Hedera (HBAR), with details of the new futures contracts.
The filings imply that the exchange intends to extend the derivatives it offers. The expected starting date would be February 18, 2025, provided that they have passed the regulatory approval.
However, as per the filing, the Crypto Market Maker Program aims to help improve the Exchange’s products by boosting liquidity in its order book. It is easier for people to buy and sell assets on the Exchange, which benefits everyone participating in the market.
In Solana, the introduction of futures contracts consists of two very different types. The first one, the Standard Solana Futures (SLC), requires a contract size of 100 SOL. Furthermore, this contract type translates into a notional value of $25,000 per contract. The second one, Nano Solana Futures (SOL), will be of a smaller contract size of 5 SOL. Also, giving it a notional value of $1,250 per contract.
Moreover, Coinbase has set a position limit for Solana futures at 3,500 SLC contracts. Based on an assumed price of $240 per SOL, this would amount to $84 million in notional value. It is roughly 0.07% of Solana’s current market capitalization.
Besides, the proposed futures contracts for Hedera, the Hedera Futures (HED) have a contract size of 5,000 HBAR. The position limit for this contract is set at 25 million HBAR. Assuming a price of $0.30 per HBAR, the notional value of the proposed Hedera futures contracts would amount to approximately $7.5 million.
Moreover, after the regulatory approval is secured, the futures contracts will be introduced where traders may take a position in Solana and Hedera. Particularly, without the necessity to have the actual tokens.
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