Coinbase Global (NASDAQ:COIN) will roll out equity index futures tied to the stock market’s biggest tech names alongside crypto exchange-traded futures, its derivatives arm said on Tuesday.
The Mag7 + Crypto Equity Index Futures offering is a first of its kind in the U.S., the company said in a blog post, noting it will launch Sept. 22.
The hybrid Mag7 + Crypto Equity Index comprises 10 components weighted at 10% apiece. Investors will get exposure to the “Magnificent 7” stocks — Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), as well as Coinbase’s (NASDAQ:COIN) own stock and crypto ETFs iShares Bitcoin Trust (NASDAQ:IBIT) and iShares Ethereum Trust (NASDAQ:ETHA).
The index will be rebalanced on a quarterly basis to reflect any market changes, Coinbase (COIN) said.
The Mag7 + Crypto Equity Index Futures contracts are monthly and cash-settled, with each one representing $1x the index. For example, at an index price of $3K, the notional value of each contract would be $3K (that is, $1 x $3K).
“We’re diversifying our US derivatives platform beyond single-asset offerings for the first time,” the trading platform said.