Coinbase has added Solana (SOL) and Hedera (HBAR) futures contracts to its derivatives market, responding to rising demand for crypto investment products. This comes as the SEC reviews Solana ETF applications, which could impact future market trends.
Coinbase Expands Futures Market
Coinbaseโs derivatives exchange has added SOL and HBAR futures contracts, bringing its total to 19 assets, which also include Dogecoin (DOGE) and Litecoin (LTC). Futures contracts allow users to speculate on the future prices of these cryptocurrencies, facilitating strategic financial planning.
Sponsored
As Coinbase stated in its blog post on Tuesday, the move comes as financial firms rush to meet the growing demand for crypto investment products, fueled by a surge in spot ETF applications under the Trump administrationโs pro-crypto stance.
โCrypto derivatives have become an essential component of the digital asset ecosystem, offering traders and institutions powerful tools for risk management, capital efficiency, and strategic exposure,โ the statement noted.
As demand for futures continues to accelerate, Coinbase is leading the way by expanding access to regulated derivatives products.
SEC Reviews Solana ETF Applications
Last week, the US Securities and Exchange Commission (SEC) acknowledged applications for Solana ETFs, meaning that the agency started with an official 21-day review, however, the process but could take up to 240 days.
Coinbaseโs new Solana futures stand out because the SEC previously argued in a lawsuit that Solana was a security.
That case is now on hold as the SEC, under new leadership after Gary Genslerโs departure, rethinks its crypto policies and works with the CFTC on clearer regulations.
On the Flipside
- In June 2023, the SEC filed lawsuits against Binance and Coinbase, alleging that Solana (SOL) is an unregistered security. These legal challenges have led to the suspension of Solana ETF filings, potentially delaying their approval until 2026.
Why This Matters
The SEC has previously relied on regulated futures markets to address fraud and manipulation concerns when approving Bitcoin and Ethereum ETFs. With such historical precedents in mind, there might be chances that Coinbaseโs launch of regulated Solana and Hedera futures contracts could influence the SECโs decision on spot ETFs.
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