Coinbase Derivatives Seeks Approval to List Solana and Hedera Futures
In a recent development, Coinbase Derivatives has officially filed with the US Commodity Futures Trading Commission (CFTC) to introduce futures contracts for Solana (SOL) and Hedera (HBAR). The popular subsidiary of Coinbase is aiming to bring these innovative contracts to the market on or after February 18, 2025, pending the necessary regulatory approvals.
The planned futures contracts for Solana and Hedera by Coinbase Derivatives are set to be cash-settled with monthly settlement periods, as outlined in the filings submitted on January 30. This move aligns with the trend of increasing regulatory filings seeking approval for new assets like crypto ETFs and derivatives, according to insights shared by renowned crypto analyst Marty Party.
The surge in ETF filings, attributed to factors such as Donald Trump's potential second term and Gary Gensler's departure from the SEC, reflects a growing interest in exploring new possibilities under the current regulatory environment.
For Solana, Coinbase is proposing the introduction of two futures contracts – the Standard Solana Futures (SLC) with a contract size of 100 SOL, equating to a notional value of around $25,000 per contract, and the Nano Solana Futures (SOL) with a representation of 5 SOL per unit, resulting in a notional value of approximately $1,250. The position limit for Solana futures is set at 3,500 SLC contracts, totaling 350,000 SOL and representing a fraction of Solana's market capitalization.
Similarly, the Hedera Futures contract (HED) is structured with a contract size and position limit of 5,000 contracts totaling 25 million HBAR, with a notional value of $7.5 million based on the assumed price of $0.3 per HBAR, accounting for a small percentage of Hedera's market cap.
As the market dynamics play out, SOL and HBAR have faced challenges with declining prices. Solana was valued at $236.11, experiencing a 9.09% decrease over the past week and a slight decline of 0.70% in the last 24 hours. On the other hand, Hedera traded at $0.31, registering a 5.34% drop over the week and a 0.67% decrease in the last day.
The recent filing by Coinbase comes in the wake of an incident involving CME Group briefly showcasing information on potential XRP and Solana futures on its beta website, a preview quickly taken down. Despite the buzz around potential futures contracts, no official decision has been communicated regarding the status of these offerings.
[Add catchy closing statement to spark viral interest]