JPMorgan Believes Coinbase Crypto Futures Approval Legitimizes BTC in the US

The approval given by the CFTC to Coinbase to open up access to trading in crypto-currency based futures symbolizes the durability of digital assets in the US.

On August 16, 2023, the CFTC-backed NFA gave permission to its Coinbase Financial Markets subsidiary, after it obtained an FCM license, to pursue activities in this sector.

In 2022, the exchange acquired FairX, a CFTC regulated crypto derivatives platform, which then changed its name to ‘Coinbase Derivatives Exchange’.

This platform is accessible to third-party brokers, FCMs and market makers. In September 2021, Coinbase applied to the NFA.

It is expected to go live amongst a chosen group of users in the following weeks.

As per JPMorgan analysts, this move of approval will bring in additional hundred millions of dollars over the upcoming two years. With derivatives being such an integral share of the entire trading undertaking, this permission by NFA will definitely help augment its returns in the long run.

They concluded by saying that this organization would need to expand further if it is to reach a bigger retail crowd.