Coinbase Is Expanding Crypto Futures—But Who Really Wins?

On February 18, 2025, the crypto exchange announced its new trading products for the US: Solana and Hedera futures contracts, which are regulated by the Commodity Futures Trading Commission (CFTC).

This means users can trade financial agreements to buy or sell SOL and HBAR at a future date, without actually owning them.

Futures are a type of derivative, a financial tool that derives value from an underlying asset. So, traders aren’t buying or selling SOL or HBAR directly. Instead, they’re agreeing to buy or sell a contract based on what they think the price will be at a later date. This allows them to profit (or lose) from price changes without owning the tokens.

Coinbase’s announcement is a big move, but is this a win for traders?

What’s the Big Deal?

The inclusion of regulated Solana and Hedera futures is poised to expand institutional access to crypto futures. In a blog post, Coinbase stated that its derivatives platform now offers 19 futures contracts, including futures on Bitcoin, Ether, Dogecoin, Stellar, and more.

Coinbase Derivatives (CDE) is registered with the CFTC and operates as a crypto-centric futures exchange. The platform intends to keep expanding its offerings.

Coinbase International Exchange, LLC, another arm of the company, has introduced perpetual futures for crypto-native forex trading, specifically featuring EURC-USDC pairs. This taps into the $7.5 trillion FX market, offering leveraged trading within the crypto ecosystem.

The crypto exchange has been pushing hard to blend traditional finance with the crypto world. With new products, it’s set to attract more big-money players.

In general, crypto exchanges are increasing their focus on derivatives, as the majority of crypto trading happens in this market. According to CCData, derivatives accounted for 68.1% of the total crypto trading volume in January 2025.

Besides Coinbase, other exchanges offering derivatives trading include Binance, Bybit, OKX, and Kraken.

Who Really Takes Advantage of Derivative Trading? 

While Coinbase is making it easier for traders to participate, concerns remain about risks for retail investors and market impact. Because futures allow traders to take leveraged positions, they can lead to sharp price swings. Liquidations of leveraged positions (when a trader’s margin is insufficient to maintain their position) can trigger cascading effects, worsening volatility.

Large players, often called “Whales”, can use derivatives to manipulate spot prices by placing massive futures bets and then influencing the market to profit from them. If there’s a strong bias toward long (buy) or short (sell) positions, it can create price pressure. 

Related: BTC Holders: Whales, Sharks, Crabs, and Shrimps

A sudden shift in sentiment can trigger liquidations, forcing traders to close positions and amplifying price movements.

The introduction of regulated futures markets, like those offered by Coinbase, makes it easier for institutional investors to enter crypto. This can improve liquidity and stability but also increase market influence from traditional finance.

Retail traders, in particular, might get burned if they don’t fully understand the risks. Leveraged trading sounds exciting, but it can be brutal if things don’t go their way.