Coinbase is taking the perpetual futures contract and applying it to stock indexes. The exchange announced on May 21 that it will launch four equity index perpetual futures contracts, marking the first time such products have been available on a US-regulated exchange.
The contracts are set to begin trading on June 8 and will cover four thematic sectors: AI10 (AIP) tracking top artificial intelligence companies, China10 (CHN) covering US-listed Chinese equities, Defense10 (DEF) for aerospace and defense firms, and Tech100 (TEK) focused on Nasdaq innovators. All four will track MarketVector indexes.
What perpetual equity futures actually mean
Perpetual futures, or “perps,” work like traditional futures contracts but with one crucial difference: they never expire. Instead of rolling over contracts every month or quarter, traders hold positions indefinitely, with a funding rate mechanism keeping the contract price tethered to the underlying asset.
Traders will be able to go long or short on any of the four sector indexes, with 24/7 trading availability. Traditional equity futures are limited by exchange hours. These won’t be.
