Coinbase is launching a new futures contract that will track the price of both U.S. tech stocks and crypto ETFs in a single product.
This new offering is called the Mag7 + Crypto Equity Index Futures, and it brings together two markets that have always traded separately, equities and crypto, into one tradable monthly contract.
There has never been a U.S.-listed derivative like this. It mixes major tech stocks with crypto exposure. The contract will be cash-settled, and each unit will track $1 x the index price. If the index hits $3000, then each futures contract is worth $3000.
According to Coinbase’s press release, the product is designed to be capital-efficient and offer diversified risk exposure across both sectors.
Coinbase combines tech stocks and crypto ETFs into one index
Coinbase confirmed that this new index is built from 10 total components, which includes the top 7 U.S. tech stocks (better known as the “Magnificent 7”) plus its own Coinbase (COIN) stock, and two crypto ETFs. The components are:
- Apple (AAPL)
- Microsoft (MSFT)
- Alphabet (GOOGL)
- Amazon (AMZN)
- Nvidia (NVDA)
- Meta (META)
- Tesla (TSLA)
- Coinbase (COIN)
- iShares Bitcoin Trust ETF (IBIT)
- iShares Ethereum Trust ETF (ETHA)
Each component will carry the same weight, which is 10% of the total index. No single stock or ETF dominates the mix. Coinbase said this will help investors avoid being overexposed to any one company or asset. However, weights can move above or below 10% between quarterly rebalances. Every three months, all weights will reset back to 10% each.
The official index provider is MarketVector, which will maintain and rebalance the product.
Coinbase said the index is designed for investors who want “thematic exposure to tech and crypto combined,” “diversification in a single product,” and “tools to manage multi-asset risk,”
The exchange called the launch “a new era of multi-asset derivatives” and said this is part of a larger strategy to expand access across asset classes.
The Mag7 + Crypto Equity Index Futures will settle monthly. Right now, the product is only available through partner platforms, but Coinbase stated they plan to roll out access to retail investors “in the coming months.”
Coinbase has already added its own equity (COIN) into the mix, along with two BlackRock-linked ETF, IBIT for Bitcoin and ETHA for Ethereum.
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Source: https://www.cryptopolitan.com/coinbase-futures-index-tied-to-mag7/
