Coinbase Derivatives said it will introduce a new type of equity index futures contract later this month, and it will expose investors to both major U.S. technology stocks and funds traded on cryptocurrency exchanges (ETFs).
According to a blog post, MAG7 + Crypto Equity Index Futures, released on September 22nd, is the first US registered derivatives agreement to combine traditional stocks with digital assets.
The company is marking an expansion beyond single asset derivatives to multi-asset products designed to provide investors with theme exposure to innovation and growth sectors, the company said.
The new index contains 10 components, each equally weighted by 10%. It consists of so-called “Magnificent 7” inventory, including Apple, Microsoft, Alphabet, Amazon, Amazon, Nvidia, Meta, Tesla, and more, along with Coinbase’s own stock and two crypto ETFs. MarketVector, known for its crypto and theme indexes, acts as the official index provider.
The contract is set for cash every month, each with one dollar multiplied by the index level. For example, an index value of $3,000 would result in an expected value of $3,000 for one contract. The index is readjusted quarterly to restore equal weighting across all components.
Coinbase has assembled its products as a way to manage multi-asset risk more efficiently while investors are exposed to both sides of the innovation economy (silicon Valley technology leaders and blockchain native assets).
“Equity Index futures mark the next evolution of our product suite, paving the way for a new era of multi-asset derivatives,” the company said in its announcement.
The launch comes amid growing desire for investors for crossover products that bridge traditional finance and crypto markets. Coinbase said it will initially trade on its partner platform, but will expand the availability of the contract to retail users a few months ago.
