Coinbase to offer combined futures exposure to Mag7 stocks, crypto ETFs

[Coinbase Releases Third-Quarter Financial Results]
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Coinbase Global (NASDAQ:COIN [https://seekingalpha.com/symbol/COIN]) will roll out equity index futures tied to the stock market's biggest tech names alongside crypto exchange-traded futures, its derivatives arm said on Tuesday.

The Mag7 + Crypto Equity Index Futures offering is a first of its kind in the U.S., the company said in a blog post, noting it will launch Sept. 22.

The contracts are tied to the hybrid Mag7 + Crypto Equity Index, which comprises 10 components weighted at 10% apiece. Investors will get exposure to the "Magnificent 7" stocks -- Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]), Apple (NASDAQ:AAPL [https://seekingalpha.com/symbol/AAPL]), Alphabet (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]), Amazon (NASDAQ:AMZN [https://seekingalpha.com/symbol/AMZN]), Meta Platforms (NASDAQ:META [https://seekingalpha.com/symbol/META]), Tesla (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]), as well as Coinbase's (NASDAQ:COIN [https://seekingalpha.com/symbol/COIN]) own stock and crypto ETFs iShares Bitcoin Trust (NASDAQ:IBIT [https://seekingalpha.com/symbol/IBIT]) and iShares Ethereum Trust (NASDAQ:ETHA [https://seekingalpha.com/symbol/ETHA]).

The index will be rebalanced on a quarterly basis to reflect any market changes, Coinbase (NASDAQ:COIN [https://seekingalpha.com/symbol/COIN]) said [https://www.coinbase.com/blog/coming-september-22-mag7-crypto-equity-index-futures].

The Mag7 + Crypto Equity Index Futures contracts are monthly and cash-settled, with each one representing $1x the index. For example, at an index price of $3K, the notional value of each contract would be $3K (that is, $1 x $3K).

"We’re diversifying our US derivatives platform beyond single-asset offerings for the first time," the trading platform said.

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