Crypto.com’s US exchange lists 4 memecoin derivatives

Crypto.com’s North American derivatives exchange, Nadex, has listed derivatives contracts tied to memecoins including PEPE and FLOKI, according to Oct. 7 filings with the United States Commodity Futures Trading Commission (CFTC).

Nadex has also listed derivatives products tied to Dogelon Mars (ELON) and BONK, according to the filings. 

The combined market capitalization of the four memecoins underlying Nadex’s contracts is nearly $7 billion, according to CoinMarketCap. 

The contracts add to Nadex’s existing suite of cryptocurrency derivatives products, including contracts tied to blockchain network tokens such as Bitcoin (BTC) and Ether (ETH). 

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The so-called “touch bracket” contracts are hedging instruments designed to pay out if a token’s spot price touches an agreed-upon ceiling or floor before the contract expires. 

“Touch Bracket Contracts are not only quite popular in markets with high volatility, such as the cryptocurrency markets, but due to their unique structure, inherently minimize the possibility of contract manipulation,” Nadex said in a filing.

Crypto derivatives are proliferating on regulated US exchanges, including established trading platforms such as the Chicago Mercantile Exchange (CME). 

In September, the US Securities and Exchange Commission (SEC) authorized Nasdaq to list options tied to BlackRockc’s BTC exchange-traded fund (ETF), iShares Bitcoin Trust (IBIT). 

The options are awaiting final signoff from other agencies, including the CFTC.

Combined trading volumes for Nadex contracts tied to BTC, ETH, and Litecoin (LTC) in 2023 exceeded 28 million contracts, according to the filing.

“Therefore, the Exchange continues to expand its cryptocurrency commodity derivative product offerings to meet public demand for diverse and regulated products,” Nadex said.

Derivatives exchanges such as Nadex self-certify derivatives products they believe comply with existing regulations. Contracts do not require explicit regulatory approval before listing.

On Oct. 7, Kalshi, a derivatives exchange, listed event contracts for betting on US election outcomes after prevailing in a landmark court battle against the CFTC in September.

On Oct. 8, Kalshi added another political event contract to its roster, letting traders bet on whether New York City’s mayor, Eric Adams, will resign after being charged with bribery in September.

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