Nothing screams of a crypto bull cycle like meme coins enjoying rip-roaring gains. This cycle, however, seems bent on bestowing a previously unimaginable level of legitimacy to the entire crypto sphere. Consider the possibility that eligible traders might soon get to trade Dogecoin (DOGE), a quintessential meme token, via futures contracts regulated by the CFTC!
For the benefit of those who might not be aware, meme coins and tokens lack any inherent claim to utility, relying instead on hype and the promise of future gains to drive the entirety of their bullish narrative.
Coinbase Derivatives LLC quietly filed certifications with CFTC to list US regulated futures for Dogecoin, Litecoin and Bitcoin Cash.
They filed them on March 7 and surprisingly nobody seemed to notice.
Futures are set to start trading on April 1 if there are no objections from… pic.twitter.com/DYbWjuS6G2
— Summers (@SummersThings) March 20, 2024
This brings us to the crux of the matter. Coinbase Derivatives LLC filed the requisite certifications with the US Commodity Futures Trading Commission (CFTC) on the 07th of March, seeking authorization to list futures contracts for Dogecoin, Litecoin, and Bitcoin Cash.
Provided that the CFTC raises no objections, these futures contracts are slated to begin trading as soon as the 01st of April.
In what constitutes a striking aspect, unlike Litecoin or Bitcoin Cash, Dogecoin does not entail any supply restrictions. Currently, around 140 billion Dogecoin tokens remain in circulation, with new supply added almost every minute courtesy of the 10,000 DOGE reward for mining a single block.
The above snippet describes the proposed contract specifications of Coinbase’s Dogecoin futures. Each contract will cover 5,000 DOGE, with settlement taking place on a monthly basis.
After the rip-roaring success of spot Bitcoin ETFs, many analysts expected the wider crypto sphere to enjoy much greater legitimacy. However, do note that Dogecoin futures are not set in stone just yet. While the CFTC has taken a much more lenient view of the crypto sphere than the SEC’s quite stringent stance, it can still raise last-minute objections.
.@JSeyff has great note out today explaining our 25% odds, i love this timeline comparison chart. Btc spot comments from SEC came 91 days bf final deadline. We curr 65 days away with eth etf deadline. Tick tock.. pic.twitter.com/Bkp4L0zoa8
— Eric Balchunas (@EricBalchunas) March 20, 2024
Meanwhile, analysts are currently pegging just a 25 percent probability to the SEC’s approval of spot Ethereum ETFs by May. As per the reporting by Fortune, the SEC is looking to reclassify Ethereum as a security first, which would complicate the ongoing negotiations.
Coming back, Elon Musk used to enjoy quite a lot of sway on Dogecoin not too long ago, with the mega-billionaire able to move the token’s market cap by billions of dollars with a simple post on X (formerly Twitter). Should these Dogecoin futures contracts materialize, Musk’s sway on the meme token is expected to wither away, with the narrative focusing instead on institutional adoption.
