Barely a week after the biggest crypto exchange in the US got listed, Nasdaq is now set to start trading options for Coinbase Global. Based on an April 19 Reuters report, one representative for Coinbase said that the COIN.O options will begin trading on Nasdaq on April 20.
The launch of equity options will provide a new way for the investors to bet on the fortunes realized by Coinbase. Equity options are designed to represent the right, but not the obligation, to buy or sell a stock at a specific price, called the strike price, on or before an expiration date.
This news comes after Coinbase’s direct listing that saw the company’s stock fluctuate between a valuation of $429.54 and $310 during its first day of trading.
Reuters projects that Coinbase Chief Executive Brian Armstrong sold nearly $292 million in shares on COIN’s first day of trading. Looking at the filings made with the United States Securities and Exchange Commission, Armstrong sold 749,999 shares in three batches at prices ranging between $381 and $410.40 per share for total proceeds of around $291.8 million. But, this works out at less than 2% of his total holdings.
Reports emerged previously that insiders dumped almost $5 billion in COIN stock briefly after it was listed. Filings on the Coinbase Investor Relations site showed a cumulative total of 12,965,079 shares were sold by insiders, worth more than $4.6 billion at COIN’s $344 share price at close on April 16.
Yahoo Finance reported that the stock has plunged by 22.5% from a high of $429.54 on April 14 to a current after-hours trading price of about $332.75 where it seems to have settled after Monday’s trading session.
Coinbase Pro has announced on April 20 that it will add support for new trading pairs for Cardano (ADA), Decentraland (MANA), Basic Attention Token (BAT), and USDC from April 20.
These four assets will get paired with three fiat currencies (USD, EUR, GBP), BTC, and ETH. Also, limited trading functionality will be made available while market liquidity is assessed during its launch.