Coinbase to Launch SpaceX Pre-IPO Perpetual Futures With 24-Hour Trading

Coinbase, the US cryptocurrency exchange, will launch pre-IPO perpetual futures that let investors trade on the value of private companies.

The company announced on June 4 that it will introduce pre-IPO perpetual futures contracts, with SpaceX as the first listing target.

The product is a USDC-based perpetual futures contract that tracks SpaceX's pre-IPO price. Investors can gain exposure to moves in SpaceX's value without owning the company's shares.

Trading will be available 24 hours a day. Investors can hold positions without expiration or rollover, and profit and loss will be settled in USDC.

The contract also includes a post-IPO conversion feature. Once the company goes public, existing positions will automatically convert into SpaceX perpetual futures. Coinbase said this will allow investors to maintain continuous exposure from the private stage through the post-listing period without taking additional action.

Pre-IPO investing had previously been largely limited to some institutional investors and high-net-worth individuals. Coinbase said it aims to offer the asset class on a regulated platform for investors who had found it difficult to access.

The company plans to expand pre-IPO perpetual futures listings to companies in technology, artificial intelligence, energy and space.