Coinbase International’s Perpetual Futures Trading Volume Soars to $38 Billion in July

Coinbase International Exchange finished July with a monthly perpetual futures trading volume exceeding $38b, data released Monday showed. This amount marks the highest trading volume since initial records began in May 2024.

The 24-hour trading volume for Ether perpetual futures reached $1.5b, surpassing Bitcoin’s $1.3 billion. Meanwhile, the total open interest for Ether futures perpetual contracts last stood at $10.9m, compared to $20.9m for Bitcoin futures perpetual contracts.

Coinbase International Exchange closed out July with monthly perpetual futures trading volume over $38 billion. View the latest data trends here 👉 https://t.co/PUj2P9PLld pic.twitter.com/bRxWwo6mAY

— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) August 5, 2024

Coinbase released these figures amidst a significant cryptocurrency market downturn, with Bitcoin and Ether seeing double-digit price declines on Monday.

Coinbase has highlighted perpetual futures, or “perps,” as the dominant force in crypto derivatives trading due to their flexibility and efficiency. Additionally, Coinbase notes that the funding rate mechanism of perps allows their prices to closely follow spot prices, much like fixed-term futures. This accuracy makes perps popular not only for speculative trading but also for hedging and arbitrage strategies.

Bermuda Authority Greenly Coinbase for Perpetual Futures Outside the US Last Year

In Sept. 2023, the Bermuda Monetary Authority (BMA) granted regulatory approval to the exchange, allowing it to offer perpetual futures to customers outside the US.

Having launched in May 2023, Coinbase International was already providing crypto derivatives services to institutional clients. With this new regulatory approval obtained in September, the crypto platform received authorization to offer regulated perpetual futures contracts to eligible customers on the Coinbase Advanced platform.

The exchange noted that these perpetual futures accounts are managed by Coinbase Bermuda and regulated by the BMA.

In its announcement, the exchange said that about 75% of crypto trading volume originates from the derivatives market. It also noted that the regulatory approval would enable retail traders to tap into the crypto derivatives market, which was otherwise predominantly controlled by institutional players.

Coinbase Rolls Out Early Opportunities in Unreleased Tokens

In June, Coinbase announced that its International Exchange and Coinbase Advanced platforms would offer pre-launch markets.

In June, Coinbase revealed that its International Exchange and Coinbase Advanced platforms would introduce pre-launch markets. These pre-launch markets will enable qualified retail users to trade perpetual futures contracts on unreleased tokens. This allows them to participate in determining the prices of upcoming projects.