Coinbase plans to launch Dogecoin futures trading, recognizing its growth beyond meme status.
The launch includes Litecoin and Bitcoin Cash futures, with Dogecoin futures based on the Market Vector Coinbase Dogecoin Benchmark Rate.

Coinbase Derivatives has disclosed its intentions in three separate letters to the United States Commodity Futures Trading Commission (CFTC) dated March 7. The announcement includes the launch of cash-settled futures contracts for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH), with a proposed release date as early as April 1.

As a prominent cryptocurrency exchange, Coinbase has acknowledged Dogecoin’s “enduring popularity,” viewing it as a transition from a whimsical meme to a significant entity in the cryptocurrency sector. This is highlighted in their statement,

Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.

A recent CNF YouTube video echoed this sentiment, spotlighting the launch of Dogecoin futures by Coinbase. This development, which also encompasses Litecoin and Bitcoin Cash futures, is anticipated for early April.

Coinbase plans to employ the “self-certification” process, aligning with regulatory standards, to initiate these futures offerings. Market analysts perceive this move as strategic, potentially swaying the Securities and Exchange Commission’s (SEC) classification of these digital assets. This follows Coinbase’s 2022 acquisition of the CFTC-regulated FairX derivatives exchange, targeting an expansion of crypto derivatives trading for U.S. retail consumers.

Coinbase’s derivatives documentation delineates the Dogecoin Futures Contract as cash-settled, based on the Market Vector Coinbase Dogecoin Benchmark Rate (“Index”). This Index reflects Dogecoin’s pricing on Coinbase’s spot exchange. Market Vector, a Frankfurt-based Index Provider, operates under the regulatory purview of Germany’s Federal Financial Supervisory Authority (BaFin). Each contract symbolizes 5,000 Dogecoin. The contract description states,

The Dogecoin Futures Contract is a cash-settled Contract based on the Market Vector Coinbase Dogecoin Benchmark Rate (‘Index’). This Index tracks the price of Dogecoin traded on the Coinbase, Inc. spot exchange. Market Vector is an Index Provider based in Frankfurt, Germany and is regulated by the Federal Financial Supervisory Authority (‘BaFin’). Each Contract represents 5,000 Dogecoin. The Exchange will initially offer the three foremost months of the Contract for trading.

At the time of this announcement regarding Coinbase’s DOGE futures trading, Dogecoin is valued at $0.152, marking a 15.81% increase over the past day.

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Filed under: Bitcoin - @ March 21, 2024 8:07 am