Coinbase will launch a new futures product this month, tracking a mix of U.S. tech stocks, crypto exchange-traded funds, and its own shares in a single unified contract.
Summary
- Coinbase will launch the Mag7 + Crypto Equity Index Futures on Sept. 22.
- The contract will combine exposure to U.S. tech stocks, crypto ETFs, and Coinbase shares.
- Institutional clients will receive access first, with retail users to follow.
On Sept. 22, Coinbase Derivatives will introduce the “Mag7 + Crypto Equity Index Futures,” a first-of-its-kind derivatives product for the U.S. market that tracks the “Magnificent 7” tech stocks, which include Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla.
Alongside this, the index will include Coinbase’s own shares and two of the largest crypto exchange-traded funds, namely BlackRock’s iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA).
“Historically, there has been no US-listed derivative that provides access to both equities and cryptocurrencies within a futures product,” Coinbase said.
Every component of the upcoming index will be given an equal weight of 10% in the final mix, ensuring no single asset exerts outsized influence.
Coinbase will rebalance the index quarterly to ensure that changes in the market don’t distort the intended weightings. The company has chosen MarketBector as the official index provider.
The U.S.-based crypto exchange has one goal with this novel product, which is to offer a single, capital-efficient gateway for investors to gain exposure to both legacy tech giants and blockchain-native assets, two markets that have “traditionally traded separately.”
“Equity index futures mark the next evolution of our product suite and pave the way for a new era of multi-asset derivatives that broaden access, efficiency, and opportunity for investors,” it added.
The contracts will be cash-settled on a monthly basis, with each representing $1 multiplied by the index value—meaning if the index is at 3,000 points, the notional value of one contract would be $3,000.
Coinbase will initially roll out the product to institutional clients, with broader retail access expected in the coming months as trading expands through partner platforms.
For CEO Brian Armstrong, the new derivatives product fits into the company’s long-term ambition of becoming the crypto “everything app.”
In a recent X post discussing the upcoming product, Armstrong said the company intends to “launch more products like this as part of the everything exchange.”
The plan was originally disclosed in July during Coinbase’s “A New Day One” livestream event via the rebranded Base App, which would eventually become a unified platform that merges trading, payments, social media, and app discovery into a single onchain experience.
Coinbase targets the Australian Pension market
On Sept. 1, Bloomberg reported that Coinbase was designing products targeting the Australian retirement savings market.
Coinbase plans to launch a tailored self-managed superannuation funds that allow individuals to control their retirement investments directly. More than 500 investors have reportedly joined the waitlist.
Source: https://crypto.news/coinbase-to-launch-futures-product-tracking-mag7-stocks-and-crypto/
