Coinbase stock price suffered a major setback on Monday as almost all the major cryptocurrencies were facing intense selling pressure. Bitcoin and Ethereum were among major losers while altcoins were facing even more selling. After US President Trump's crypto summit failed to impress cryptocurrency traders, the selling was evident during the weekend. Even the strategic cryptocurrency reserve wasn't as some cryptocurrency traders had imagined. So, selling was expected and this morning, Ethereum touched its multiple-month lows at $1,755. Bitcoin and Ethereum have recovered during the last two hours. Coinbase could see more pain if crypto market do not recover shortly.

Coinbase Plans U.S. Crypto Futures Market with 24/7 Bitcoin and Ethereum Futures Trading

Coinbase, one of the largest cryptocurrency exchanges in the United States, is gearing up to introduce round-the-clock Bitcoin and Ethereum futures trading via its Coinbase Derivatives platform. This move marks a significant shift for the U.S. market, aligning it more closely with global crypto trading practices. The initiative, which is expected to launch in the coming weeks, aims to provide traders with uninterrupted market access, improved risk management, and increased liquidity. With this development, Coinbase is positioning itself at the forefront of crypto derivatives innovation, responding to a growing demand for seamless, 24/7 trading opportunities.

The Significance of 24/7 Crypto Futures Trading

Cryptocurrency markets operate without borders, functioning non-stop across different time zones. Unlike traditional financial markets, which have designated trading hours, crypto assets trade continuously worldwide. However, futures trading in the U.S. has largely remained confined to standard market hours—until now.

Coinbase's introduction of perpetual 24/7 Bitcoin and Ethereum futures trading will provide U.S. traders with unrestricted access to crypto derivatives. This means investors will no longer have to wait for market openings to hedge their positions or capitalize on price movements. Instead, they can react in real time, just as they would in the spot market.

The move also enhances market efficiency, aligning the U.S. with international crypto exchanges that already offer continuous trading of derivatives. This expansion is a response to strong demand from crypto-native traders who seek more flexible options to manage their portfolios.

Why Futures Matter in Crypto Markets

Futures contracts play a critical role in financial markets, allowing traders to speculate on an asset’s future price or hedge against volatility. A futures contract enables an investor to buy or sell the underlying asset at a predetermined price on a set expiration date.

For Bitcoin and Ethereum traders, futures contracts provide leverage, enabling them to amplify gains (or losses) with a smaller initial capital outlay. This leverage attracts high-frequency traders and institutions looking to maximize their market exposure.

Coinbase's decision to introduce these futures contracts is also expected to boost liquidity in the market. With more participants actively trading futures, price discovery improves, reducing the overall market volatility and enhancing stability.

Customized Futures Contracts to Suit Diverse Traders

To cater to traders with different risk appetites and investment strategies, Coinbase has announced that it will offer multiple contract sizes. One notable inclusion is "micro futures", which represent a fraction of the underlying asset.

Micro futures lower the barrier to entry, allowing retail traders to participate in futures trading without committing to large contract sizes. These contracts are particularly beneficial for individual investors who may not want exposure to a full-sized Bitcoin or Ethereum futures contract.

Perpetual-Style Futures on the Horizon

Beyond traditional futures contracts, Coinbase is also working on launching perpetual-style futures with long-dated expirations. Unlike standard futures, which have set expiration dates, perpetual futures allow traders to maintain positions indefinitely—provided they meet margin requirements.

This offering would further position Coinbase as a major player in the crypto derivatives space, bringing it in line with offshore exchanges that already provide such services. For U.S. traders, perpetual futures would offer another strategic tool to engage with the market while benefiting from Coinbase's regulatory compliance.

How Coinbase’s Move Stacks Up Against Global Competitors

While Coinbase’s 24/7 futures trading is groundbreaking for the U.S., many international crypto exchanges have been operating on this model for years. Binance, OKX, and Bybit, for example, already provide continuous derivatives trading with perpetual contracts and high-leverage options.

However, the key differentiator for Coinbase is its regulatory compliance within the U.S. market. Unlike offshore exchanges that operate in regulatory gray areas, Coinbase’s platform provides a regulated environment, offering traders legal protections that may not exist elsewhere.

This factor could make Coinbase's futures platform particularly attractive to institutional investors who require compliance-driven trading solutions.

The Future of Crypto Derivatives in the U.S.

Coinbase’s initiative represents a major milestone for the U.S. cryptocurrency market, pushing it toward a more sophisticated and globally integrated financial ecosystem.

With institutional adoption of crypto assets increasing and regulatory clarity improving, the demand for diverse, accessible, and regulated derivatives products will likely continue to grow. Coinbase's move may also encourage other U.S.-based exchanges to follow suit, ultimately fostering a more competitive landscape.