Dogecoin Futures Trading — Coinbase Will Offer DOGE Derivatives

, Key Takeaways

• Coinbase will launch future contracts for Dogecoin, Litecoin, and Bitcoin Cash starting April 1st.
• Dogecoin price surges 14% following the announcement.
• Analysts question Coinbase’s motives for listing these futures contracts.
• Some speculate it’s a tactic to pressure the SEC on crypto asset classification.

Coinbase will introduce futures trading  for Dogecoin, Litecoin, and Bitcoin Cash on April 1.

Highlighting DOGE’s “enduring popularity,” Coinbase says the cryptocurrency has evolved beyond its meme origins. Dogecoin has, the exchange said, secured a permanent spot in the world of crypto.

Coinbase Lists DOGE, LTC, and BCH for Futures Trading

The move to launch futures trading for Dogecoin, alongside Litecoin and Bitcoin Cash, reflects Coinbase’s recognition of their relevance and potential for growth.

On March 7, Coinbase Derivatives sent three distinct letters  to the United States Commodity Futures Trading Commission (CFTC). In them, the exchange set out its intention to initiate cash-settled futures contracts for the three coins.

One aspect of these communications was the mention that Coinbase Derivatives could list these futures contracts on its exchange before securing formal approval from the CFTC.

Coinbase also clarified  its strategy to employ the “self-certification” process as a means to roll out these futures contracts, provided they adhere to the regulatory framework established by the CFTC.

Doge Day? After Listing on Coinbase, Price Soars 14%

According to the letter  concerning the Dogecoin futures product:

“Coinbase Derivatives […] hereby submits for self-certification its initial listing of the Dogecoin Futures contract to be offered for trading on the Exchange on or after April 1, 2024.”

Dogecoin’s lasting appeal and robust community backing indicate that it has evolved beyond its meme roots.

Coinbase pointed  to this evolution from a simple joke to a core component of the crypto sector as the reason for its listing Dogecoin.

It said :

“Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.”

According to the latest figures from CoinMarketCap, Dogecoin has seen a 14% increase in its value today (March 21), with its trading price now at $0.15.

Influence Tactic or Market Expansion?

Market analysts on social media expressed confusion over Coinbase’s decision to list futures contracts. They also suggested it could be a deliberate strategy to influence the Securities and Exchange Commission (SEC).

Bloomberg ETF analyst James Seyffart, in a tweet  dated March 20, speculated that the filings might aim to prevent the SEC from labeling crypto assets that use the proof-of-work consensus mechanism as “securities.”

Seyffart pondered  whether the SEC would challenge their classification as “commodities futures” instead of “securities futures”. He also noted the difficulty of declaring them securities following the approval of spot Bitcoin ETFs.

In 2022, Coinbase took over the FairX  derivatives exchange, regulated by the CFTC, to introduce crypto derivatives trading to its users in the United States.

Coinbase explained  that its aim was to make the derivatives market more accessible to its vast retail customer base.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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