Interactive Brokers Group (NASDAQ: IBKR) announced on Tuesday the debut of new derivatives products featuring nano-sized Bitcoin and Ethereum futures powered by Coinbase (NASDAQ: COIN). This launch marks an expansion in Interactive Brokers’ cryptocurrency offerings, facilitating increased accessibility for investors interested in digital assets through a cooperative effort with Coinbase.
The newly offered futures contracts are available in two distinct formats. Investors can choose monthly expiration contracts or perpetual futures that do not require rolling over. The contract sizes have been set at 0.01 Bitcoin and 0.10 Ethereum, tailored specifically to appeal to smaller traders or those seeking lower capital thresholds compared to traditional Bitcoin futures contracts, which often demand substantially higher investment amounts.
These smaller contract sizes, referred to as "nano" contracts, are designed to reduce the financial barriers associated with cryptocurrency futures trading. They maintain trading within a regulated exchange framework, providing an environment with oversight that aligns with institutional standards. Trading hours for these futures span the full week, 24 hours per day, closing only briefly every Friday from 5 to 6 p.m. Eastern Time for scheduled maintenance.
Milan Galik, Chief Executive Officer of Interactive Brokers, highlighted that the perpetual-style futures products offer investors the ability to obtain long-dated exposure to Bitcoin and Ethereum while retaining flexibility in their trading strategies. This format ensures that investors do not face the inconvenience of contract expiration and rollover, allowing for sustained positions in the market.
From Coinbase’s side, Institutional Co-CEO Greg Tusar observed that the introduction of nano-sized contracts enables a broader set of investors to participate in digital asset markets. The provision of smaller contract sizes within a regulated framework enhances accessibility and provides a safer, more transparent avenue for engagement with cryptocurrencies.
Turning to Interactive Brokers’ stock performance, the company’s shares have recently experienced a pullback after touching highs in the $80 to $82 range. Despite this decline, the stock price remains above both its 100-day and 200-day exponential moving averages (EMAs), at levels of $68.22 and $62.87 respectively. This technical positioning suggests that the broader upward trend over the long term is still intact.
However, the near-term stock momentum appears to be weakening. The share price fell below the 20-day EMA at $74.04 and is currently testing the 50-day EMA support near $71.14. The Supertrend indicator remains positive at approximately $79.39, but the recent breakdown indicates diminishing buying pressure. Furthermore, the stock's recent retreat from the upper boundary of its trading channel between $80 and $82 is typical market behavior following tests of channel highs.
On the downside, the stock is currently adjusting toward the channel midpoint, situated roughly between $76 and $77. Key support is identified in the $70 to $71 zone, which coincides with the 50-day EMA as well as a historical horizontal support level. Should the price decline below this level and breach the lower trendline of the channel, it would represent a clear signal of weakening upward momentum in the rally. The final line of defense in the technical structure is the 100-day EMA at $68, which, if violated, would further challenge the stock's bullish stance.
In the broader market context, Bitcoin was trading near $68,995, down 1.58%, while Ethereum was at $2,011.04 with a decline of 4.41%. Coinbase Global Inc. shares mirrored this decline, falling 2.09% to $163.75, coinciding with the new derivatives launch and current market conditions.