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Coinbase files to launch Cardano, Natural Gas futures contracts

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The firm aims to boost futures trading with diversified offerings across digital and traditional asset classes.

Coinbase files to launch Cardano, Natural Gas futures contracts
Photo: David Esser

Key Takeaways

  • Coinbase is introducing futures contracts for Cardano and Natural Gas, pending CFTC approval.
  • Cardano futures allow traders exposure to price movements without holding the asset.

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Coinbase is seeking regulatory approval to launch Cardano (ADA) and Natural Gas (NGS) futures contracts—a move that would expand its offerings in the energy and crypto derivatives markets.

Coinbase Derivatives, Coinbase’s futures exchange, said Friday it had submitted documentation to the CFTC to self-certify futures for ADA and NGS.

Self-certification with the CFTC allows Coinbase to assert regulatory compliance with futures contracts, expediting their launch unless the CFTC raises objections. If approved, these new futures contracts are expected to go live on March 31.

The move follows Coinbase’s recent introduction of Solana (SOL) and Hedera (HBAR) futures contracts, and is part of the firm’s ongoing strategy to provide traders access to both crypto and traditional futures trading on a single regulated platform.

Cardano is one of the most prominent blockchain platforms, known for its focus on scalability, sustainability, and security. With a dedicated ecosystem and increasing adoption of DeFi, NFTs, and enterprise blockchain solutions, Cardano is a natural addition to Coinbase’s futures lineup.

The ADA futures would allow traders to gain exposure to Cardano’s price movements without holding the underlying asset, enabling advanced risk management and leveraged trading strategies.

Following Coinbase’s announcement, ADA surged around 2% to $0.75, per CoinGecko.

The Natural Gas futures offering would position Coinbase to compete with traditional futures exchanges in the energy sector, where the commodity plays a crucial role in global markets and economic stability.

The SEC has been cautious about approving crypto ETFs, but the launch of futures contracts may help alleviate some concerns by providing a regulated framework for price discovery and risk management. This could make the SEC more inclined to approve ETFs, especially if futures trading demonstrates market stability.

Grayscale Investments is the only manager that has filed for a spot Cardano ETF. This filing was submitted through NYSE Arca, which proposed to list and trade shares of the Grayscale Cardano Trust on the exchange.

On Tuesday, the SEC postponed its decision regarding the proposed Grayscale’s spot ADA ETF and also extended the review period for other crypto ETFs.

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