DOGE surges after Coinbase announces Dogecoin futures

Leading crypto exchange Coinbase has announced plans to introduce futures trading for Dogecoin ($DOGE). The exchange noted Dogecoin’s “enduring popularity,” and suggested that the meme coin has moved beyond its joke origins to firmly establish itself within the industry

Dogecoin has rallied off the back of this, outperforming the rest of the wider market. At the time of writing, the meme coin was up 15% in the past 24-hours, but still 17% lower from last week’s peak. 

Coinbase’s futures plans

Coinbase Derivatives, a branch of the exchange, revealed in three distinct letters to the United States Commodity Futures Trading Commission (CFTC) dated 7 March, its intention to offer cash-settled futures contracts for Dogecoin, Litecoin ($LTC), and Bitcoin Cash ($BCH) starting 1 April . 

The company has indicated its willingness to bypass traditional approval routes by employing the “self-certification” process, provided it adheres to the regulatory guidelines established by the CFTC. 

One letter specifically mentioned the plan for Dogecoin futures, stating: “Coinbase Derivatives […] hereby submits for self-certification its initial listing of the Dogecoin Futures contract to be offered for trading on the Exchange on or after April 1, 2024.”

Dogecoin: From meme to market mainstay

Initially launched as a joke, Dogecoin was based off the popular Shiba Inu internet meme. Unlike major cryptocurrencies such as Bitcoin, Dogecoin was not intended to be taken seriously. However, support from notable personalities like Elon Musk and a dedicated community has helped boost its standing

Coinbase Derivatives’ decision to list Dogecoin futures is a nod to the token’s persistent popularity and the robust support from its community, affirming its status beyond that of a mere meme.

Coinbase said: “Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.”

Market analysts respond

The move by Coinbase has caught the attention of market analysts. James Seyffart, an ETF analyst from Bloomberg, commented on 20 March via the social media platform X, suggesting that Coinbase’s filings might be a strategic attempt to influence the SEC’s classification of crypto assets. 

He pointed out that if these assets are based on Bitcoin’s proof-of-work consensus mechanism, labelling them as “securities” could become more challenging.

Especially as the SEC approved 11 Bitcoin exchange-traded funds earlier this year. However, it is currently showing reluctance to do the same for $BTC’s main rival Ethereum ($ETH).