Coinbase has launched a pre-IPO perpetual futures product with up to 5x leverage, debuting the new offering with a SpaceX-linked contract ahead of the aerospace company’s expected public listing at a reported $1.8 trillion valuation.
Summary
- Coinbase has launched SpaceX pre IPO perpetual futures, giving eligible traders access to private market price exposure with up to 5x leverage.
- SpaceX contracts trade 24/7, settle in USDC, and will automatically convert into standard perpetual futures if the company goes public.
- Coinbase said more pre IPO perpetual futures tied to technology, AI, energy, and space companies are planned as demand for private market derivatives grows.
According to Coinbase, the new contracts allow eligible traders to gain price exposure to private companies before they enter public markets through USDC-settled perpetual futures that trade around the clock.
Available through Coinbase Advanced in supported jurisdictions, the SpaceX contract is the first in what Coinbase described as a planned lineup of pre-IPO perpetual futures covering sectors such as technology, artificial intelligence, energy, and space.
Unlike traditional pre-IPO investing, the contracts do not provide ownership of company shares, voting rights, or any direct claim on equity. Instead, traders gain exposure through derivatives tied to a company’s private-market valuation.
Under the product’s structure, traders can open and close positions at any time without expiry dates or rollover requirements. Coinbase said all profits and losses are settled directly in USDC. If SpaceX completes an initial public offering, the company said existing positions will automatically convert into a standard SpaceX perpetual futures contract without requiring any action from users.
Coinbase expands pre-IPO trading offerings
Presenting the launch as part of its “Everything Exchange” strategy, Coinbase said the new market category extends crypto-native trading infrastructure to private-company price exposure.
In its announcement, the exchange said access to pre-IPO valuations has traditionally been limited for many market participants, adding that the new contracts are designed to offer exposure through the same perpetual futures format already used by crypto traders.
Recent weeks have seen several crypto platforms introduce similar products as interest in pre-IPO derivatives grows. As previously reported by crypto.news, Hyperliquid-based platform TradeXYZ launched pre-IPO perpetual futures.
Beyond Coinbase, exchanges including Binance, OKX, Bitget, Crypto.com and Ventuals have also introduced pre-IPO perpetual futures tied to private companies amid expectations of several technology and AI listings this year.
Coinbase highlights liquidity and valuation risks
Alongside the launch, Coinbase warned that pre-IPO perpetual futures carry risks not typically associated with standard perpetual contracts.
According to the exchange, these markets rely on valuation-based index pricing and introduce IPO conversion risk. Coinbase also cautioned that lower liquidity levels could contribute to larger price swings and raise the possibility of liquidations.
Those concerns surfaced recently when Ventuals’ SpaceX-linked contract temporarily lost about 45% of its value after incorrect pricing data from an external oracle provider entered the system. The incident triggered trader liquidations, after which Ventuals announced compensation for affected users and said it would review its pricing infrastructure.
Jurisdictional restrictions also limit availability, and the pre-IPO perpetual futures product is not accessible in the U.S., Canada, the United Kingdom, Singapore, India, Australia, and several other restricted markets.
The launch comes shortly after Coinbase expanded its regulated derivatives footprint. Last week, Coinbase Financial Markets became a Commodity Futures Trading Commission-regulated futures commission merchant, enabling institutional clients to access global crypto perpetual futures and options venues, including Deribit, under updated CFTC guidance.
