Traders Get AI, Defense, and China Perp Futures on Coinbase Starting June 8

U.S. Traders Get Regulated Equity Perps From Coinbase Derivatives on June 8

The exchange announced the launch on Thursday. “We’re adding even more ways to trade equities on Coinbase,” the company wrote. “Go long or short on the hottest sectors and trends.” The contracts cover four indexes: AI10 (AIP), China10 (CHN), Defense10 (DEF), and Tech100 (TEK).

Perpetual futures, commonly called perps, are derivative contracts that let traders speculate on an asset’s price without an expiration date. Unlike traditional futures, which settle at a fixed date, perps can be held indefinitely. To keep the contract price close to the actual market price, exchanges use a funding rate mechanism.

If the perp trades above the spot price, long holders pay short holders a fee. If it trades below, short holders pay longs. Funding typically occurs every eight hours. This system keeps prices anchored without requiring contract rollover.

Coinbase Derivatives applied that same structure to equity indexes. Each contract is cash-settled and represents 1x of its underlying index. A Tech100 contract, for instance, would carry a notional value of $4,000 if the Marketvector US Listed Innovators 100 Index is priced at $4,000. The AI10 Index Perpetual-Style Futures track the top 10 U.S.-listed companies that generate at least 50% of their revenue from AI infrastructure, data, and applications.

The underlying Marketvector US Listed AI 10 Index covers four segments: big data, fabless semiconductors, hyperscalers and AI-as-a-service, and hardware and data center solutions. Components are weighted by float-adjusted market cap with a 15% maximum per stock and rebalanced quarterly.

The China10 contract tracks the ten largest and most liquid Chinese companies listed on U.S. exchanges as American Depositary Receipts on Nasdaq and the NYSE. Like the AI10, it applies a 15% concentration cap and quarterly rebalancing.

Defense10 targets the top ten U.S.-listed aerospace and defense companies that derive at least 50% of their revenue from defense-related operations. The same 15% cap and quarterly rebalance apply. Tech100 is the broadest of the four.

It tracks 100 Nasdaq-listed companies across technology, communications, consumer discretionary, industrials, materials, health care, consumer staples, and energy. The index applies no concentration cap, allowing natural market leadership to drive weightings.

It holds the top 80 companies by float-adjusted market cap, with the largest and smallest stocks from the top 120 added or removed to maintain the 100-holdings count. For U.S. traders, regulated access to perpetual-style contracts tied to equity themes has been limited.

Offshore venues have offered similar structures, but without the oversight of a registered U.S. futures exchange. Coinbase Derivatives says it operates on regulated market infrastructure with centralized liquidity and transparent price discovery.

The contracts also carry a tax advantage. As futures, they fall under the 60/40 rule, where 60% of gains are taxed as long-term capital gains regardless of holding period. Trading the same exposure through equities or exchange-traded funds (ETFs) directly would not carry that treatment.

Perps, however, carry real risks. High leverage amplifies losses on small price moves. Funding fees accumulate if a trader holds a position on the wrong side for an extended period. And like all centralized exchange products, users carry counterparty risk.

Coinbase explained that more details on trading access through partner platforms will follow. Retail availability is planned for the coming months. The June 8 launch marks the first time Coinbase Derivatives has applied the perpetual-style framework it developed for crypto futures to the equity space in a U.S. regulated setting.