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Coinbase Bundles Crypto and Tech Giants in Single Futures Product
Key Takeaways
- Coinbase will launch the "Mag7 + Crypto Equity Index Futures", which will merge top tech stocks, crypto ETFs, and its own shares;
- The index includes 10 assets, each weighted at 10%, with contracts settled monthly in cash based on the fund’s total value;
- This marks the first US futures product to combine equity and crypto exposure, with rebalancing handled quarterly by MarketVector.
Coinbase
This upcoming index will offer a bundled approach, which lets traders gain access to both markets through a single contract. The product, known as the "Mag7 + Crypto Equity Index Futures", is scheduled to go live on September 22.
It will track shares of seven tech companies—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—as well as Coinbase’s own stock and two BlackRock exchange-traded funds (ETFs) tied to Bitcoin
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Coinbase stated that the US market currently lacks any futures instruments that link both equity and crypto markets together. This new product is designed to offer access to two asset types that usually require separate trades.
Each asset in the index will be given an equal 10% weight, which ensures none of them dominates the contract’s value.
Contracts are to be settled in cash on a monthly basis, and the value of one contract will be equal to $1 multiplied by the total value of the fund.
Quarterly adjustments will be made to rebalance the weight of each component. MarketVector, an established index provider, will handle the task of maintaining and calculating the index.
Coinbase’s CEO, Brian Armstrong, mentioned on X that the exchange plans to introduce more products like this to become a platform that offers a wider range of trading options across various markets.
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