Coinbase Derivatives Exchange said it will launch its first crypto derivatives investment vehicle on June 27, introducing a nano bitcoin futures contract under the ticker “BIT”. The product is tied to 1/100th of a bitcoin and will be offered through a CFTC-regulated marketplace.
Smaller Contract Size Targets Broader Access
The launch marks a notable step in Coinbase’s expansion into crypto derivatives. The company entered the segment after acquiring derivatives venue Fairx in mid-January 2022, saying at the time that it would use Fairx’s exchange infrastructure to build out its derivatives business.
Coinbase framed the BIT launch as part of a broader effort to make derivatives more accessible to its large customer base through a simpler user experience. While the product will be managed by Coinbase Derivatives Exchange, retail investors are expected to access BIT through stock brokerage firms starting June 27, rather than through the standard spot trading interface.
Part of a Broader Product Reshuffle
The announcement comes amid a series of product updates across the company. On June 22, Coinbase revamped its wallet, saying the changes were aimed at making Web3 more accessible and intuitive. A day later, the company said it planned to combine Coinbase Pro’s features and fee schedule into a unified Coinbase account, giving users the option of either advanced trading tools or a simpler retail app experience.
Taken together, those moves suggest Coinbase is trying to streamline consumer-facing products while also expanding into more sophisticated trading services such as derivatives.
Competition From CME and FTX US Derivatives
Coinbase is not entering an empty market. CME Group has already launched micro bitcoin and micro ether futures, with each contract sized at 1/10th of one bitcoin or ether. Meanwhile, FTX US Derivatives, formerly Ledgerx, offers bitcoin mini futures that allow participation with as little as 0.01 BTC.
Against that backdrop, Coinbase’s BIT product pushes contract sizing even lower, with exposure set at 1/100th of a bitcoin. The report says brokers offering access to BIT include Wedbush, Edgeclear, Ninjatrader, Ironbeam, Optimus Futures, Tradovate, and Stage 5, among others. The launch highlights intensifying competition in regulated, retail-oriented crypto futures products in the U.S. market.