Coinbase Derivatives said it would introduce a new type of equity index futures contract next month, offering exposure to investors in both the leading US technology stocks and funds exchanged by cryptocurrency (ETFS) in a single product.
Launching September 22, the futures of the MAG7 + Crypto Equity Index are the first listed derivatives listed in the US to combine traditional equality with digital assets, According to a blog post.
Moving, the company said, marks expansion beyond single-asset derivatives in multi-asset offerings designed to give investors to the theme exposure to the change and growth sectors.
The new index includes ten components of equal weight to 10% each. It consists of the so-called “Magnificent 7” -Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla-Alphabet-Coinbase’s own stock and two crypto ETFs: BlackRock’s Ishares Bitcoin Trust Trust (Go) and ishares ethereum trust (Etha). Marketvector, known for crypto and thematic index, will serve as official index providers.
The contracts will be monthly and cash-settle, with each representing $ 1 multiplied by the index level. In an index value of $ 3,000, for example, the notional value of a contract is $ 3,000. The index will be quarterly balanced again to restore equal weight to all ingredients.
Coinbase framed the product as a way for investors to manage multi-assets better while obtaining exposure on both sides of the economic change-leaders of Silicon Valley Tech and blockchain-roaring-roof properties.
“The futures of the Equity Index marked the next evolution of our product suite and provided the way for a new period of multi-asset derivatives,” the company said in its announcement.
The launch is in the middle of growing investor appetite for crossover products that bridge the traditional financial and crypto market. Coinbase said it plans to expand the availability of contracts with retail users in the early months, even though they are at first traders on the partner’s platforms.
