Coinbase's “nano” bitcoin futures product set three consecutive records in the last week, despite the fact that its spot trading volume fell from $200 billion in May 2021 to $59 billion in July.
In June, the micro bitcoin futures product was introduced.
According to The Block, the cash-settled futures contract represents one-hundredth of a bitcoin and is traded on numerous retail exchanges, including Wedbush, EdgeClear, and NinjaTrader.
“It takes less upfront money than traditional futures products and presents a real prospect for major expansion of retail participation in the US regulated crypto futures markets,” said Boris Ilyesky, CEO of Coinbase Derivatives Exchange, at the product's introduction.
Following many days of growth, the national volume of nano futures reached 217,045 on July 19. However, according to Bloomberg data, contract volumes plummeted to 117,493 on July 22.
Data from June and July showed that daily volumes were less than 50,000 contracts.
According to an email sent out by Coinbase's sales staff, the crypto exchange firm has seen a “spike in activity ever since retail broker partners began marketing/ promotional activities last week.”
Coinbase first entered the futures market this year after purchasing FairX, a Commodity Futures Trading Commission-regulated derivatives venue.
Its competitors include organizations like FTX and CME Group, who trade tens of billions of dollars in bitcoin futures each month.
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