Coinbase Launches Futures Index to Monitor Bitcoin, Ethereum, and Top 7 Stocks like Nvidia
Coinbase, a leading cryptocurrency exchange, announced the debut of a new hybrid index called the "Mag 7 + Crypto Equity Index Futures" on Tuesday. The index, set to launch on September 22, will track the "Magnificent 7" tech stocks, Coinbase's own shares, and BlackRock's Bitcoin and Ethereum ETFs.
The announcement was made in a blog post, following Coinbase's recent lean towards its derivatives arm as an area of growth. The index will be available through partner platforms, with MarketVector serving as the official partner for the index calculation. However, Coinbase has yet to reveal the specific names of the partner platforms.
The Magnificent 7 consists of Apple, Microsoft, Google, Amazon, Meta, Tesla, and Nvidia shares. The index is weighted equally for each component, reflecting an equal distribution of influence among the tech giants.
Meanwhile, in the world of prediction markets, firms like Polymarket have been actively buying derivatives in the U.S., such as the options exchange Deribit, which Coinbase acquired in a $2.9 billion deal in May. Polymarket's recent move to purchase derivatives exchange QCX for $112 million was described as a key move for their return to U.S. markets.
In a separate development, crypto exchange Kraken debuted U.S.-regulated crypto derivatives in mid-July, as per a blog post. Kraken also announced plans to buy NinjaTrader, a futures broker, for $1.5 billion in March. The exchange further revealed that it would offer commodity, fixed income, FX, and equity futures.
Interestingly, both BlackRock ETFs debuted in the U.S. last year, providing a foundation for the tracking of Bitcoin and Ethereum in the new index. The index will use BlackRock's iShares Bitcoin Trust and iShares Ethereum Trust ETFs for this purpose.
As for Coinbase's performance, the San Francisco-based firm's stock price has rallied 22% year-to-date. On Monday, Coinbase shares were little changed at $304.40, according to Yahoo Finance.
The launch of the Mag 7 + Crypto Equity Index Futures marks a significant step for Coinbase, as it continues to expand its offerings in the rapidly evolving world of cryptocurrency and technology.
