Coinbase unveils new futures product aimed at traditional equities investors
- Coinbase announced the upcoming launch of its Mag7 + Crypto Equity Index Futures on September 22.
- The Mag7 + Crypto Index comprises the top seven US technology stocks, alongside Coinbase's stock and BlackRock's crypto ETFs.
- The firm added that each of the 10 products will carry a 10% weight in the index.
Coinbase (COIN) plans to launch the Mag7 + Crypto Equity Index Futures, aiming to provide traders exposure to the Magnificent 7 tech stocks and BlackRock's crypto exchange-traded funds (ETFs).
Coinbase to launch index offering combined futures trading for tech stocks and crypto ETFs
Coinbase announced on Tuesday that it will roll out a new futures index combining crypto products with traditional stocks.
The Mag7 + Crypto Equity Index Futures, set to launch on September 22, would be the first product to offer combined exposure to traditional equities and cryptocurrency ETFs. Coinbase stated that this is the first time its US derivatives platform will expand beyond single-asset products.
"Historically, there has been no US-listed derivative that provides access to both equities and cryptocurrencies within a futures product," Coinbase wrote in the statement.
The Mag7 + Crypto Equity Index Futures is composed of ten components, each with an equal weight of 10%. It comprises the Magnificent 7 stocks, including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla, alongside Coinbase's COIN and BlackRock's iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA).
Coinbase indicated that the new index will undergo quarterly adjustments to maintain equal weighting across its components. The exchange stated that shifts in prices may cause allocations to drift from the 10% target, but the review process will bring them back in line.
It also added that German-based MarketVector Indexes will serve as the index administrator.
The move follows Coinbase's plans to expand its product suite over the past few months. The company reportedly stated plans to launch tokenized stocks in the US in June, joining Robinhood and Kraken, which already offer such products.
Likewise, CNBC reported in July that Coinbase is looking to launch an "everything exchange," which will include tokenized real-world assets (RWAs), stocks, derivatives, prediction markets and early-stage token sales.
COIN failed to add gains before the market closed on Tuesday.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
