Will Coinbase Launch Dogecoin Futures? DOGE price reacts with news

Coinbase, a leading U.S. cryptocurrency exchange, plans to launch futures contracts for the meme cryptocurrency Dogecoin (DOGE). The arrival of the token is close to being included in the Coinbase derivatives platform, debuting its trading alongside other derivative products, such as Nano Bitcoin Futures (BIT).

On March 7, the exchange sent letters to the Commodity Futures Trading Commission (CFTC) outlining its intentions to launch cash-settled futures contract products for the cryptocurrencies Dogecoin (DOGE), Litecoin (LTC) and Bitcoin Cash (BCH). , on its derivatives platform.

In the letters, the exchange highlighted the possibility of products being listed on the platform in April. The company’s estimated time to list the products is April 1, 2024.

Bloomberg senior analyst specializing in exchange-traded funds (ETFs), James Seyffart, opined that this is a strategic move by Coinbase to pressure the Securities and Exchange Commission (SEC) to provide clearer rules for the cryptocurrency industry.

“This is interesting… I wonder if the SEC objects to these being classified as ‘commodity futures’ versus ‘security futures.’ All of this was derived from Bitcoin, so it would be difficult to make “these are securities” claims following the #Bitcoin ETF approvals. This may be why Coinbase chose them,” he said.

This is interesting… wonder if the SEC objects to these being classified ‘commodities futures’ vs ‘securities futures’. These all forked from Bitcoin so “these are securities” claims would be hard to make after spot #Bitcoin ETF approvals. Might be why Coinbase chose them🤔 https://t.co/PRCxzQEYbi

— James Seyffart (@JSeyff) March 20, 2024

After the news related to the futures contract, the price of Dogecoin reacted and shot up approximately 20%, reaching US$0.1531. At the time of publication, the price of Dogecoin was quoted at US$0.1519, up 12.7% in the last 24 hours. During this period, the cryptocurrency recorded a trading volume of US$3,418,333,467. In its weekly development, DOGE has shown a notable pullback in its price of 17.9% over the last seven days.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.