On April 1, Coinbase, a well-known cryptocurrencycurrency exchange, will launch futures trading for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH), according to Bloomberg ETF analyst James Seyffart.
Even though Dogecoin began as a meme, its immense popularity and community support have propelled it to the forefront of the cryptocurrencycurrency world, prompting Coinbase to take action.
The prices of all three tokens rose more than usual. At the time of publication, DOGE had increased by 19%, BCH by 18%, and LTC by 6.4%, exceeding the overall cryptocurrencycurrency market gain of 6.2%.
By adhering to regulatory standards, the exchange hopes to use the “self-certification” technique, avoiding official clearance from the Commodities Futures Trading Commission (CFTC). With this strategy, Coinbase can swiftly list futures contracts on its marketplace.
Analysts believe Coinbase’s action will put pressure on the Securities and Exchange Commission (SEC) over classification concerns regarding digital assets that use Bitcoin’s proof-of-work consensus process, however some industry professionals are skeptical of the decision.
Dogecoin, according to Coinbase, has grown from a meme to a critical component of the bitcoin ecosystem as a result of its long-term popularity and strong community support.
In order to enhance retail customers’ access to derivatives trading, Coinbase purchased the CFTC-regulated FairX derivatives exchange in 2022.
Coinbase’s decision to launch futures trading demonstrates its belief in the long-term viability and market demand of these cryptocurrencycurrencies.
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