Regulated Futures for Shiba Inu Filed With US CFTC: Details

Coinbase Derivatives (formerly FairX) seeks the U.S. Commodity Futures Trading Commission (CFTC) to list a regulated futures contract for Shiba Inu (SHIB). 

Dubbed 1k Shib Futures (SHB), the fund will be listed under a self-certification model. According to the filing submitted yesterday, Coinbase Derivatives intends to list and open trading for the product on July 15, 2024. 

Details of SHB Futures Contract 

In a letter addressed to Christopher J. Kirkpatrick, the secretary of the U.S. CFTC, Coinbase Derivatives explained that the product will be a monthly cash-settled and margined contract. 

The exchange also provided vital details about the fund. Specifically, it stated that the contract size is 10 million SHIB, with the minimum tick size and value set at $0.00001 per token and $0.10 per contract, respectively. 

The exchange said it will set the contract’s position limit to 30,000 SHB Futures, equivalent to 300 billion SHIB tokens.

Furthermore, the exchange noted that the final settlement price of all expiring contracts will be based on the Market Vector Coinbase 1k Shib benchmark reference rate at 4:00 PM London time. 

It also highlighted that the product’s index value will be determined by a two-hour settlement window, with Market Vector breaking the period into 40 three-minute intervals.  

Market Vector would aggregate all volume and trades from the constituent exchange at each interval, thus calculating a volume-weighted median price.  

According to Coinbase Derivatives, the trading hours for the Shib contract are from 5:00 to 4:00 PM (CT), Sunday through Friday. However, a trading break is scheduled for Monday through Thursday, from 04:00 to 05:00 PM (CT). 

Coinbase Derivatives to Launch Other Regulated Futures for Four Altcoins 

Meanwhile, the exchange also submitted multiple futures contract certification documents for four other altcoins: Stellar Lumen (XLM), Polkadot (DOT), Chainlink (LINK), and Avalanche (AVAX). 

These products are also expected to launch on July 15, the same date as SHB Futures Contracts. Notably, Coinbase Derivatives will manage the volatility of these assets by deploying its risk control measures, including a daily price limit.