Financial experts from JMP Securities have praised Coinbase recent approval to offer cryptocurrency futures trading, calling it proof that the United States is still excited about cryptocurrencies.
In a note that they sent out to people, the experts said that this approval shows that the US is still a strong player in the cryptocurrency world. They also said that it’s a good step towards stopping the idea that the US is losing its place in the crypto industry.
Devin Ryan and his team at JMP Securities further stated that this approval makes Coinbase’s position stronger in the legal fight they’re having with the US Securities and Exchange Commission (SEC). They continue and claimed that this approval shows how Coinbase is building a strong position in the world of rules and regulations.
Coinbase recently got a thumbs-up from the National Futures Association. This means they can start a marketplace where people can trade futures contracts for two big cryptocurrencies: Bitcoin (BTC) and Ether (ETH). Coinbase revealed this is really important because it will help more people take part in the world of cryptocurrencies.
JMP Securities looked at how this will help Coinbase make more money. They think that the new futures trading business could make “hundreds of millions of dollars over the first two years.”
In the long run, JMP Securities believes that this business might bring Coinbase as much revenue as their spot trading operation. However, they added that achieving this on a wide scale would require some time and effort.
