Coinbase combines cryptocurrency and technology stocks in new futures index

Coinbase to Launch New Futures Product for Stock and Crypto Exposure

Coinbase is gearing up to introduce a new product that will allow users to trade US technology stocks, associated funds, and futures products—all under a single agreement. The company announced that starting September 22, it will launch the Mag7 + Crypto Equity Index Futures, which will track prominent tech stocks known as the “Magnificent 7” including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, alongside Bitcoin and Ethereum from BlackRock and Coinbase stocks.

The exchange notes that this is a significant development, as there have not been any US-listed derivatives that provide simultaneous access to both stocks and cryptocurrencies within futures products. This index aims to offer exposure to asset classes that traditionally have been traded separately.

Since acquiring Deribit, a major crypto options and futures exchange, for $2.9 billion in May, Coinbase has been focused on expanding its derivatives offerings. The trading volume for crypto derivatives recently surged, showing a 132% year-over-year increase, with the total reaching over $20 trillion in just the first half of the year.

Access for Institutional Clients First

Each asset in the upcoming index will be weighed evenly at 10%, meaning institutional clients will get the first chance to access it. Coinbase plans to announce further details regarding transaction access soon and expects to make the product available to retail users in the coming months.

This index will function as a cash-held monthly contract, increasing the fund’s potential with each contract.

Coinbase also mentioned that they will conduct quarterly rebalances to accommodate market changes, with Marketvector serving as the official index provider.

CEO’s Vision for the Future

Coinbase CEO Brian Armstrong expressed on X that the index is part of a broader initiative called “Everything Exchange.” He stated that the company is launching several products aimed at transforming Coinbase into a comprehensive platform that integrates crypto wallets, transactions, payments, and even social media.

In mid-July, the company had announced its vision to evolve into an “all apps” platform for crypto, rebranding its wallets as “base apps.”

Daily trading volume on Coinbase’s derivatives platform has remained consistent, surpassing $5 billion in the past month alone. On a particularly strong day, August 25, transactions reached $9.9 billion, marking one of the highest volumes since early June.