TLDR
- Kraken now offers CME futures for oil, gold, and major equity indices.
- The platform’s pricing for CME contracts is set at 0.5 basis points.
- Kraken’s futures include S&P 500, oil, gold, and major FX pairs.
- The exchange targets serious traders, with deals on market data access.
Kraken, a leading crypto exchange, is expanding its offerings to include traditional CME Group futures contracts, such as oil, gold, and equity indices. This move significantly broadens the platform’s capabilities, allowing users to trade across a range of asset classes, from metals to foreign exchange. With this expansion, Kraken positions itself to compete with both traditional brokers and crypto-native platforms looking to diversify their product offerings.
Kraken’s Expansion into Traditional Futures
Kraken’s U.S. derivatives platform, Kraken Derivatives US, is set to offer access to a wide range of traditional futures contracts. These include equity indices, energy, metals, and foreign exchange (FX), all sourced through CME Group, the global leader in derivatives markets. Traders can now access popular CME futures such as S&P 500, oil, gold, and major FX pairs, further strengthening Kraken’s position in the futures trading space.
By connecting its platform directly to CME’s regulated futures markets, Kraken aims to attract serious traders who seek a seamless trading experience across traditional and crypto markets. With this move, Kraken expands beyond cryptocurrency futures like Bitcoin and Ethereum, introducing well-established markets like oil, silver, and cattle futures. This offers traders an all-in-one platform where they can access a broader spectrum of financial products.
Competitiveness in Pricing and Target Audience
Kraken’s pricing structure is tailored to attract high-level futures traders. The exchange has set an ultra-competitive rate of 0.5 basis points for its traditional derivatives contracts, positioning itself as a cost-effective alternative for those who engage in frequent or large-scale trading. This pricing model aligns with Kraken’s strategy of drawing in serious, professional traders, making its platform appealing for both retail and institutional clients.
Kraken’s expanded offering also comes with deals on market data access for retail and professional traders alike, enhancing the platform’s appeal. However, it remains to be seen whether Kraken will follow CME’s existing trading hours of 24/5 or shift to offering round-the-clock trading. As CME Group itself pushes towards 24/7 trading for crypto derivatives, Kraken’s future plans could align with this shift in the broader derivatives market.
Strategic Move Following NinjaTrader Acquisition
This expansion is part of Kraken’s broader strategy to strengthen its position in the futures market. Earlier this year, Kraken made headlines with its $1.5 billion acquisition of NinjaTrader, a U.S. retail futures platform.
The deal was one of the largest crypto and traditional finance tie-ups, signaling Kraken’s intention to bridge the gap between cryptocurrency and traditional financial markets. The acquisition also provided Kraken with the infrastructure to launch more diverse futures products on its platform.
By offering CME-listed futures, Kraken is diversifying its product offerings in line with the growing interest in tokenized equities and cross-market trading. This move comes after Kraken’s introduction of Bitcoin and Ethereum futures earlier in the year, signaling its commitment to offering both crypto and traditional finance products on the same platform.
Potential Market Growth and Industry Competition
Kraken’s expansion into traditional derivatives aligns with a larger trend in the financial industry, where traditional brokers and crypto platforms are increasingly competing for market share in a range of asset classes. Brokerages like Robinhood are also expanding into markets such as oil and gold, positioning themselves to challenge larger, established players in traditional futures trading.
Kraken’s entry into this space positions it as a serious contender against both traditional finance platforms and emerging crypto-native competitors. While Kraken has yet to confirm whether its futures contracts will be available 24/7, the move underscores the growing integration between traditional and digital assets. With CME Group’s own push toward 24/7 crypto futures trading, Kraken’s expanded offerings may signal the next phase in this evolving market.
