The product will follow an even-weighted methodology, with each asset accounting for 10%.
Coinbase has announced plans to launch a new product in its growing suite of offerings. The crypto exchange aims to expand into traditional equities by launching equity index futures. This new product, the Mag7 Crypto Equity Index futures, will debut on September 22. Coinbase intends for this product to combine exposure to both traditional equities and crypto ETFs.
Coinbase is expanding beyond single-asset offerings to introduce its equity index futures. The launch of the Mag7 and Crypto Equity Index futures marks a significant step. This will be the first product from Coinbase to offer exposure to both traditional stocks and crypto assets. Coinbase’s new offering will feature an even-weighted index, with each asset accounting for 10%.
The Mag7 Crypto Equity Index will include seven major stocks, known as the “Magnificent 7.” These stocks include Apple, Microsoft, Google, Amazon, NVIDIA, Meta, and Tesla. Along with these, Coinbase will include its own stock (COIN) and BlackRock’s iShares Bitcoin ETF and Ethereum ETF. Coinbase aims to provide exposure to the two largest cryptocurrencies, Bitcoin and Ethereum, by market cap.
“With this launch, we are building the next evolution of our product suite,” Coinbase said in a blog post. The exchange views this as an essential part of its broader strategy to become the “everything exchange.” The new product will be rebalanced quarterly to adjust for any market changes. However, as asset prices fluctuate, their weights may shift temporarily before the reset.
Coinbase’s new futures product reflects its ongoing efforts to diversify its derivatives platform. By offering a combined exposure to both equities and crypto, Coinbase is looking to attract a broader range of investors. The exchange aims to meet the growing demand for multi-asset derivatives. This move also aligns with Coinbase’s acquisition of the crypto options platform, Deribit, which cost $2.9 billion.
Through these efforts, Coinbase continues to solidify its position as a leader in the crypto space. The new Mag7 futures product is an important milestone in the exchange’s expansion into traditional markets. Coinbase’s latest move further reflects its goal of building an integrated financial platform that spans both traditional and digital assets.
