Coinbase launches pre-IPO perpetual futures, starting with SpaceX

Crypto exchange Coinbase has launched pre-IPO perpetual futures, beginning with a SpaceX contract that lets traders get price exposure to Elon Musk's aerospace company ahead of its expected public listing next week at a $1.8 trillion valuation. The move nudges open a corner of finance historically gated behind accreditation, suit fittings, and a polite "we're full."

Coinbase's pre-IPO perps are USDC-settled contracts with 24/7 trading, no expiry, no rollover, and automatically convert into a standard perp contract if and when a company completes an IPO, the company said Thursday.

A Coinbase spokesperson told The Block that pre-IPO perps offer up to 5x leverage. By comparison, Coinbase's standard stock perpetual futures offer up to 10x leverage, while ETF perpetual futures offer up to 20x leverage — a tidy little leverage ladder for the risk-curious.

Coinbase said the SpaceX listing is only the first in a planned pipeline of pre-IPO perps covering sectors including technology, artificial intelligence, energy, and space.

Growing pre-IPO perps market

Pre-IPO perps have grown in popularity in recent weeks, particularly after TradeXYZ, a Hyperliquid-based decentralized perp platform, launched pre-IPO perp trading with Cerebras, an AI chipmaker and potential Nvidia competitor, as The Block reported recently. Pre-IPO perps give retail traders exposure to private companies, a market historically reserved for accredited investors and private funds. But notably, since pre-IPO perps are derivative contracts, they do not provide equity ownership, voting rights, or any direct claim on company shares — so you get the price action without the shareholder badges.

With a slew of anticipated tech and AI IPOs this year, a growing number of crypto platforms, including centralized and decentralized exchanges, have launched pre-IPO perpetual futures in recent weeks, including Binance, OKX, Bitget, Crypto.com, and Ventuals.

The risks of pre-IPO markets were highlighted last week when Ventuals' SpaceX contract briefly fell about 45% after incorrect price data was published by an external oracle provider. The drop triggered liquidations for some traders, leading Ventuals to compensate affected users and review its pricing system — a reminder that synthetic exposure can synthetic-collapse just as fast.

"Pre-IPO perpetual futures significantly differ from standard perpetual futures, carrying unique considerations and posing elevated risks. These markets are characterized by a valuation-based index price mechanism and IPO conversion risk, and are more prone to lower liquidity, higher volatility, and increased liquidation risk," Coinbase warned.

Coinbase's pre-IPO perps are available to eligible Coinbase Advanced users in supported jurisdictions, the spokesperson said, noting that access is not available in the U.S., Canada, the United Kingdom, Singapore, India, Australia, and other restricted markets.

Coinbase already offers standard crypto perps for eligible users in supported jurisdictions outside the U.S. through Coinbase International Exchange for institutions and Coinbase Advanced for retail. In the U.S., Coinbase offers Commodity Futures Trading Commission-regulated perpetual-style futures through Coinbase Derivatives Exchange.

Separately, last week, Coinbase Financial Markets became a CFTC-regulated U.S. futures commission merchant, enabling institutional clients to access global crypto perpetual futures and options markets, including Deribit, under new CFTC guidance.

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