Coinbase is shaking up the crypto landscape with a monumental announcement: starting May 9, 2025, US traders will be able to trade Bitcoin and Ethereum futures around the clock. The introduction of 24/7 Bitcoin and Ethereum futures trading marks a significant shift for US-based crypto traders, allowing them to react to market movements in real-time. This move comes just days after the US Congress advanced a bill focused on stablecoin regulations, signaling growing attention on the crypto market.
In this blog post, we’ll dive into the details of Coinbase’s new offering, how it will impact the crypto derivatives market, and why this could be a game-changer for institutional investors and retail traders alike.
What is Coinbase’s 24/7 Futures Trading?
For the first time, Coinbase is enabling 24/7 trading of Bitcoin (BTC) and Ethereum (ETH) futures for US-based traders. Previously, futures trading was constrained by traditional market hours, limiting traders’ ability to react instantly to price fluctuations.
This means that from May 9, 2025, US traders will be able to place and manage Bitcoin and Ethereum futures contracts at any time, day or night. This provides a significant advantage, particularly in the fast-moving world of cryptocurrency, where prices can change rapidly.
Coinbase’s move comes at a time when the cryptocurrency market is gaining increasing attention from both retail investors and institutional players. The ability to trade futures contracts continuously means traders can execute strategies with far greater flexibility and respond to market changes without having to wait for market open.
The Introduction of Perpetual Futures: A Major Leap for Crypto Trading
In addition to offering 24/7 trading, Coinbase is also developing perpetual futures contracts. Unlike traditional futures, which have a fixed expiration date, perpetual futures allow traders to hold positions indefinitely without worrying about contract expiration.
This development is a game-changer for US traders, offering a more efficient way to hedge risks or implement long-term positions. The ability to trade perpetual futures on US soil also reduces the reliance on offshore exchanges, which have often been the go-to places for traders looking for more flexible options.
For institutional investors and high-net-worth individuals, this is a crucial development. It provides greater flexibility, enabling more sophisticated trading strategies that are not constrained by fixed timelines or expiration dates. Whether you’re an individual investor or part of a larger fund, the perpetual futures market presents a more adaptable trading environment.
The Institutional Push: Why This Matters for US Traders
One of the key goals behind Coinbase’s decision to introduce 24/7 Bitcoin and Ethereum futures trading is to encourage greater institutional participation in the US crypto market.
The move positions Coinbase as a more competitive player in the global derivatives market. By offering continuous trading and introducing perpetual futures contracts, Coinbase is paving the way for institutional investors to trade Bitcoin and Ethereum futures in a regulated environment without relying on offshore platforms.
In addition to increasing trading volume, this shift towards 24/7 futures trading will likely encourage more capital inflows into the crypto market, particularly from institutional players who have previously been hesitant to participate due to the limitations of fixed market hours.
The Impact of Crypto Regulations on Coinbase’s New Futures Market
Coinbase has been working closely with the Commodity Futures Trading Commission (CFTC) to ensure its futures offerings comply with US regulations. The launch of 24/7 Bitcoin and Ethereum futures trading comes at a pivotal time, as US lawmakers continue to shape crypto regulations, particularly for stablecoins.
Just 24 hours before Coinbase’s announcement, the US Congress advanced a bill that addresses crypto stablecoin regulations, signalling that the US is taking steps toward clearer crypto policy. With the crypto landscape in flux, Coinbase’s ability to offer regulated futures trading gives US traders more confidence in the platform’s stability and regulatory compliance.
As the US government works to establish clear rules around cryptocurrencies and crypto derivatives, Coinbase is positioning itself to be a leading player in the institutional adoption of digital assets.
Why Perpetual Futures Matter: Greater Flexibility for Traders
The introduction of perpetual futures contracts is a crucial feature of Coinbase’s new offering. These contracts don’t have an expiration date, unlike standard futures contracts. This means traders can keep their positions open as long as they choose, with no need to worry about contract expiration or rolling over contracts.
Perpetual futures allow traders to:
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Hold positions indefinitely: No need to close out positions at expiration, allowing for long-term strategies.
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Implement flexible hedging strategies: The absence of expiration dates offers more opportunities to protect positions without being forced to act before a specific deadline.
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Reduce reliance on offshore exchanges: Traders can now access the flexibility of perpetual futures in a regulated US environment, avoiding the risks associated with offshore platforms.
For both retail and institutional traders, the ability to hold positions without worrying about expiration dates provides a major advantage in managing long-term investments and reacting to price swings.
What Does This Mean for Bitcoin and Ethereum Derivatives?
The launch of 24/7 Bitcoin and Ethereum futures trading is expected to drive greater institutional participation in the crypto derivatives market. With over 75% of total crypto trading volume currently made up of derivatives, the new offering from Coinbase will likely capture more market share, particularly from institutional traders who were previously limited by fixed trading hours.
As the futures market grows, the increased trading activity will likely lead to higher open interest in Bitcoin and Ethereum futures. As of now, Bitcoin futures open interest stands at $53 billion, showing steady growth in demand for crypto derivatives.
The introduction of perpetual futures contracts will also help institutional traders implement more efficient and scalable strategies, potentially reducing their reliance on offshore exchanges that have historically been seen as offering more flexible derivatives products.
Key Takeaways: What Coinbase’s Futures Launch Means for You
Coinbase’s 24/7 Bitcoin and Ethereum futures trading is set to revolutionise the crypto market. Here’s a quick breakdown of the key points:
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24/7 trading for US traders: You can now trade Bitcoin and Ethereum futures at any time.
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Perpetual futures contracts: No expiration dates, offering long-term flexibility for traders.
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Institutional growth: Coinbase is positioning itself to attract more institutional investors to the US crypto market.
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Regulatory compliance: The move comes as US regulators are advancing crypto-related bills, particularly around stablecoins.
As a trader, this means more flexibility, more opportunity, and greater access to institutional-grade products without needing to turn to offshore exchanges.
Photo credit: Decrypt
