Coinbase Shows Interest In FTX Europe
Coinbase is considering acquiring FTX Europe, highlighting the growing importance of crypto derivatives in global trading strategies. Derivatives volume in the second quarter of 2023 was six times higher than spot volume, indicating a significant shift from spot trading, which focuses on an asset’s current price, to derivatives, which have become more prominent in the market. This trend highlights the growing significance of derivatives in global trading.
FTX Europe, was a key player in the market due to its unique perpetual futures crypto derivative. The Cypriot regulatory license, acquired by FTX for $376 million in 2021, remained an asset even after the company’s bankruptcy. FTX Europe faced several contenders, including Crypto.com and FTX FDM. Coinbase, which showed interest in FTX Europe post-FTX’s bankruptcy, has stepped back from the acquisition possibility. This move aligns with Coinbase’s strategic acquisition history, as evidenced by their previous takeover of FairX in 2022. Coinbase is continuously assessing opportunities to expand its operations and collaborates with global teams.
(With inputs from Shikha Singh)
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