Coinbase’s New Futures Index Tracks Bitcoin, Ethereum—Plus ‘Mag 7’ Stocks Like Nvidia

Coinbase is debuting futures in the U.S. that will simultaneously give traders exposure to cryptocurrencies and tech firms, CEO Brian Armstrong said on Tuesday.

The company is rolling out a hybrid index called “Mag 7 + Crypto Equity Index Futures,” and it will track “Magnificent 7” stocks, Coinbase’s own shares, and BlackRock’s Bitcoin and Ethereum ETFs, according to a blog post.

Each of the index’s components are weighted equally, meaning a change in Bitcoin’s price will have a similar effect on the index as a change in the price of Nvidia’s shares. In addition to the chipmaker, the index tracks Apple, Microsoft, Google, Amazon, Meta, and Tesla shares.

The index uses BlackRock’s iShares Bitcoin Trust and iShares Ethereum Trust ETFs for tracking the two largest cryptocurrencies by market capitalization. Both products debuted in the U.S. last year, and they have generated billions of dollars of inflows.

The company plans on sharing more details about trading the index on “partner platforms,” suggesting that the product won’t be available through Coinbase’s app initially. The index is set to launch on September 22.

Decrypt reached out to Coinbase for comment but did not immediately receive a response.

Coinbase shares were little changed on Monday at $304.40, according to Yahoo Finance. The San Francisco-based firm’s stock price has rallied 22% year-to-date.

This year, Coinbase has leaned into its derivatives arm as an area of growth. In May, Coinbase unveiled a $2.9 billion deal to acquire the options exchange Deribit.

It is fairly commonplace for crypto exchanges to offer futures outside the U.S., but amid tension between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, the practice has been mired in regulatory uncertainty for years.

Crypto exchange Kraken debuted U.S.-regulated crypto derivatives in mid-July. At the time, it said “commodity, fixed income, FX and equity futures” were coming, in a blog post. In March, Kraken said it would buy NinjaTrader, a futures broker, for $1.5 billion.

Prediction markets have also been buying firms that offer derivatives in the U.S., such as Polymarket. Last month, the firm said it was purchasing derivatives exchange QCX for $112 million, describing it as a key move for returning to U.S. markets.