- Coinbase International is launching perpetual futures for Shiba Inu (SHIB) and other meme coins on May 30, 2024, to enhance trading strategies for institutional clients outside the U.S.
- Following the announcement, Shiba Inu’s trading volume surged by 51.95%, highlighting strong interest in these new financial instruments.
In a significant move that underscores the growing interest in meme-based cryptocurrencies, Coinbase International is set to launch perpetual futures for Shiba Inu (SHIB) and several other meme coins on May 30, 2024. This development aims to enhance trading flexibility and strategies for institutional clients outside the U.S., providing advanced tools for speculating on these highly volatile assets.
Expanding Horizons: Meme Coins and More
@CoinbaseIntExch will add support for Bonk, FLOKI, and Shiba Inu perpetual futures on Coinbase International Exchange and Coinbase Advanced. The opening of 1000BONK-PERP, 1000FLOKI-PERP, and 1000SHIB-PERP markets will begin on or after 9:30am UTC 30 MAY 2024. $BONK $FLOKI $SHIB pic.twitter.com/TNNAFEjtHH
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) May 23, 2024
The upcoming launch of perpetual futures includes not just Shiba Inu (SHIB) but also popular meme coins like Dogecoin (DOGE), Pepe (PEPE), and the recently declining Dogwifhat (WIF). Additionally, more established cryptocurrencies such as Cardano (ADA), Avalanche (AVAX), and Bitcoin Cash (BCH) will be available for trading. Coinbase’s decision to expand its offerings follows the establishment of its offshore derivatives exchange in May 2023, which received regulatory approval in September 2023 to offer futures trading to users outside the United States.
The new perpetual futures contracts, including 1000BONK-PERP, 1000FLOKI-PERP, and 1000SHIB-PERP, are designed to allow traders to speculate on these cryptocurrencies‘ price movements without owning the underlying assets. This feature is particularly advantageous for institutional investors seeking more sophisticated trading strategies. Unlike traditional futures, perpetual futures do not have an expiry date, enabling continuous trading and offering greater flexibility in managing positions.
Coinbase’s decision to introduce these instruments is a response to the growing interest in meme-based cryptocurrencies and their potential for high volatility and trading volumes. The addition of these futures contracts is expected to attract more institutional clients looking for advanced trading tools.
Market Reactions and Future Prospects
Following the announcement, Shiba Inu’s trading volume surged by 51.95% over the past 24 hours. Currently, SHIB is trading at $0.00002493, with a 5% increase in the last 24 hours. Other meme coins, however, have experienced mixed fortunes. Dogwifhat (WIF) has seen a 7% decline, while Bonk (BONK) is the sole meme cryptocurrency showing positive movement, with a 3% increase. This market volatility is part of a broader cryptocurrency slump, with Bitcoin on the verge of dropping below the $67,000 mark. Despite these conditions, Coinbase remains confident in the strong demand for its futures products, particularly among sophisticated traders looking for new opportunities to hedge and speculate.
Coinbase’s initiative to introduce perpetual futures for meme coins aligns with its broader strategy to expand its derivatives market presence. Earlier this month, the exchange announced plans to offer futures contracts for gold and oil, responding to growing interest from advanced traders. These moves signify Coinbase’s commitment to diversifying its product offerings and catering to a global clientele.
Adding to the excitement, Shytoshi Kusama, a prominent figure in the SHIB community, has sparked curiosity about the possibility of a SHIB ETF. Kusama’s cryptic tweet, accompanied by the hashtag #staytuned, suggests that the SHIB community may soon face a significant decision regarding an ETF, further capitalizing on the current enthusiasm.
As Coinbase continues to innovate and expand its product lineup, the future of meme-based cryptocurrencies looks increasingly dynamic and promising. With the introduction of perpetual futures, institutional traders now have more tools at their disposal to navigate this volatile and exciting market.
