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Coinbase is launching pre-IPO perpetual futures contracts tied to SpaceX, giving eligible traders outside the U.S. price exposure to the private company ahead of its planned public listing. The contracts are the first in a planned pipeline of pre-IPO perpetual futures on the platform, the company said.
Structured as a derivative and denominated in USDC, the SpaceX Pre-IPO Perpetual Future has no expiration date and is available for trading around the clock, according to Coinbase, which says traders can enter and exit positions at will. Up to 5x leverage is available on the contracts, The Wall Street Journal reported. The product carries no equity ownership and does not require separate brokerage onboarding, Coinbase said.
When SpaceX completes its IPO, positions in the pre-IPO contract will convert to a standard SpaceX perpetual future with no action required from traders, the company said. The contracts are offered through Coinbase Bermuda Ltd., which is licensed by the Bermuda Monetary Authority, and are not available to U.S. persons.
"Access to high-conviction, non-correlated exposure has never been more valuable to traders," Liz Martin, head of derivatives at Coinbase, told CNBC. "We've built the most trusted platform for crypto trading — now we're putting those same rails to work on price exposure to some of the world's most exciting private companies, before they ever touch a public exchange."
