Coinbase Launches US500 Equity Index Perpetual Futures with Up to 20x Leverage

Coinbase Derivatives has launched US500 Equity Index Perpetual Futures on its platform, offering up to 20x leverage and no expiration date.

The contracts track the S&P 500 index and use funding rates to keep prices tethered to the underlying asset. This structure allows traders to hold positions indefinitely without having to roll them over or worry about expiration dates.

With this launch, Coinbase Derivatives is expanding its offerings to cover major US equity benchmarks, including thematic indexes focused on AI, defense, and the Nasdaq-100.

The CFTC-regulated platform's entry into the perpetual futures market has been made possible by Chairman Mike Selig's policy statement, which allows for case-by-case approval of products. However, this approach is currently being tested in federal court, with CME Group filing a lawsuit against the CFTC and Chairman Selig.

The appeal of 20x leverage on a major equity index is straightforward: it amplifies both gains and losses in equal measure. However, the risks are just as clear, and they compound in ways that can catch even experienced traders off guard.