SHIB Scores Major Win With U.S. Regulated Derivatives Launch

Shiba Inu has received another major utility boost as Coinbase’s SHIB index fund goes live on its derivatives marketplace. This is a major deal for a meme coin, considering the fact that it generally doesn’t gain this level of adoption.

Shiba Inu Now Live on U.S Derivatives Platform

In an X post, Coinbase revealed the launch of U.S. perpetual-style futures tied to the meme coin  The exchange made it official that the SHIB 1k Index had been introduced in the Coinbase Derivatives. This enables traders to access the market through a legal futures structure.

 It is accessible to both retail and institutional investors via authorized Futures Commission Merchants. It is modeled in a similar way to offshore perpetual products. This is governed by regulatory requirements in the US.

This is an improvement as it will allow greater market access and put the asset into a regulated environment, akin to traditional digital currencies such as Bitcoin.

The launch of the derivatives continues the efforts that were initiated earlier this year. In September, Coinbase launched SHIB futures for trading. This was the start of something new for spot exchange-traded funds for the meme coin.

Under the new SEC guidelines, crypto assets with regulated futures markets are qualified for fast-track review for their respective ETFs. This led to the filing of the application for the Shiba Inu ETF by the T. Rowe Price Group with the US SEC.

The latest listing in Coinbase includes the futures of Cardano, Avalanche, Dogecoin, Polkadot, Sui, Hedera, Bitcoin Cash, Litecoin, and Chainlink.

The inclusion of SHIB has particularly garnered attention because the listing of a meme token to such an extent is unusual at this stage of recognition from regulatory bodies.

Institutional Adoption Continues to Expand

Shiba Inu was added to Japan’s “Green List” of pre-approved digital assets recently, joining Bitcoin and Ethereum. The new classification may encourage more institutions to use crypto. It may also be tax-friendly if the Japanese government chooses to lower the tax on crypto capital gains.

Other than the product launch, the project has recently formed a collaboration with TokenPlay AI to develop a Shiba-themed gaming app. The project will offer both AI gaming and rewards on the blockchain, and the branding will entail SHIB. 

In Europe, a investment firm called Valour Inc. introduced a SEK-denominated ETP that tracks the meme crypto on the Spotlight Stock Market in Sweden. 

The entry of the meme coin into regulated derivatives markets is a signal of maturation, experts say. This puts the coin under the same compliance framework as Bitcoin and Ethereum derivatives.