Coinbase has introduced CFTC-regulated perpetual futures trading for U.S. retail traders, starting July 21, 2025, through its Coinbase Financial Markets platform. The initial offerings include nano Bitcoin (BTC-PERP) and nano Ether (ETH-PERP) contracts, featuring up to 10x leverage, no monthly expirations, and trading fees as low as 0.02%. These contracts, with five-year expiration dates and hourly funding rates, aim to mirror global perpetual futures while complying with U.S. regulations.
Strategy Announces IPO of STRC Dividend Product
Strategy (formerly MicroStrategy) announced a proposed initial public offering (IPO) of 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), priced at $100 per share to raise $500 million. The proceeds will primarily fund Bitcoin acquisitions and general corporate purposes. STRC offers cumulative monthly dividends starting at a 9% annual rate, adjustable based on one-month term SOFR fluctuations, with Strategy aiming to maintain the stock’s trading price near $100. The stock includes redemption rights at $101 per share plus unpaid dividends and repurchase options for shareholders upon a “fundamental change.”
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The IPO, managed by firms like Morgan Stanley and Barclays, supports Strategy’s Bitcoin-focused treasury strategy, which has driven 104% annualized returns for MSTR compared to 59% for Bitcoin. Both developments reflect significant steps in expanding regulated crypto investment options and innovative corporate financing tied to digital assets. Coinbase’s CFTC-regulated perpetual futures (BTC-PERP and ETH-PERP) open sophisticated trading tools to U.S. retail investors, previously restricted by regulatory hurdles.
With up to 10x leverage and low fees (0.02%), this could drive higher trading volumes and attract a broader range of traders, from retail to institutional, boosting market liquidity. By offering perpetual futures, Coinbase strengthens its position against global exchanges like Binance and Bybit, which dominate the $2 trillion crypto derivatives market. This move could capture a slice of the 90% of global crypto trading tied to derivatives, potentially increasing Coinbase’s U.S. market share.
As one of the first U.S. platforms to offer CFTC-regulated perpetual futures, Coinbase sets a benchmark for compliance in a tightly regulated market. This could encourage other exchanges to follow, fostering innovation while aligning with U.S. laws, though it may also draw increased scrutiny from regulators like the SEC or CFTC. The availability of high-leverage products (10x) could amplify price swings in Bitcoin and Ether, especially during volatile periods. While this offers profit potential, it also heightens risks for retail traders, potentially leading to significant losses if not managed carefully.
Accessible derivatives may normalize crypto as a mainstream asset class in the U.S., encouraging investors to view Bitcoin and Ether as viable for hedging or speculation, similar to traditional futures markets. Strategy’s IPO of STRC, a dividend-paying preferred stock tied to its Bitcoin treasury strategy, introduces a novel way for companies to raise capital using crypto assets. The $500 million raised, primarily for Bitcoin purchases, reinforces Strategy’s bet on Bitcoin as a store of value, potentially inspiring other firms to adopt similar strategies.
The 9% variable dividend, tied to SOFR, offers an attractive yield in a low-interest-rate environment, appealing to income-focused investors. However, the stock’s value is indirectly linked to Bitcoin’s performance, exposing investors to crypto volatility without direct ownership, which could deter risk-averse shareholders. Strategy’s aggressive Bitcoin acquisition strategy (already holding over 1% of all Bitcoin) and the STRC IPO signal strong corporate confidence in Bitcoin’s long-term value. This could bolster market sentiment, driving Bitcoin prices higher, but also risks overexposure if Bitcoin’s value declines significantly.
The STRC structure, with redemption and repurchase options, blends traditional equity features with crypto-backed innovation. Success could redefine corporate treasury strategies, but failure (e.g., inability to sustain dividends or Bitcoin losses) might harm Strategy’s credibility and stock performance. The IPO may attract attention from regulators, given its unconventional tie to Bitcoin. Additionally, Strategy’s 104% annualized MSTR returns versus Bitcoin’s 59% highlight its leveraged approach.
Both moves signal a maturing crypto market, with Coinbase democratizing access to derivatives and Strategy pioneering crypto-backed corporate finance. They could drive mainstream adoption but also heighten risks of volatility, regulatory pushback, and investor overexposure. The success of these initiatives may hinge on market conditions, regulatory clarity, and Bitcoin’s price trajectory.