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Coinbase Files for CFTC Approval: Introducing Futures for SHIB and AVA

Coinbase has filed for regulatory approval from the Commodity Futures Trading Commission (CFTC) to offer futures on several altcoins, including SHIB and AVA. This move aims to enhance trading options and attract more institutional investors, with the new futures potentially starting as early as July 15.

Expansion of Product Offerings

Coinbase’s strategic filling for CFTC approval for SHIB and AVA marks a significant expansion in Coinbase’s product offerings. Notably, these products are meant to offer investors and traders new mechanisms to deal with risk, and price fluctuations, and engage more fully in the cryptocurrency economy. Interestingly, this step aligns with Coinbase’s strategy to diversify its portfolio and improve users’ trading experience by requiring less capital upfront.

Strategic Partnerships and Compliance

Moreover, Coinbase has partnered with Stripe to improve service and on-chain adoption. This partnership focuses on integrating USDC on Stripe’s Base platform to speed up transactions and lower service costs. This will speed up transactions in 150+ countries and simplify fiat-to-crypto conversion for U.S. customers.

Apart from regulations, this strategy will enable Coinbase to attract more institutional investors providing them with regulated trading. Since there is no clarity from the SEC on risk assets CFTC’s nod will help a wider audience to enter the futures market.

Market Impact

At the time of reporting, AVA had the largest market capitalization among the proposed altcoins, at $11.1 billion, with its trading price slightly increased. However SHIB, despite its lower price point, remains a popular choice among investors with a market cap of $10.1 billion, reflecting the diverse interest in the crypto market. SHIB fell 3.7% to $0.00002 per token in the last 24 hours. 

Other tokens also met with a freefall, LINK was down 4.3% in 24 hours to $13.7. While DOT fell 1.9% to $6.19.

By expanding its product offerings and enhancing compliance, Coinbase aims to solidify its position in the cryptocurrency market, making it more accessible and appealing to a wider range of investors.

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