LONDON (Reuters] – Coinbase, a leading cryptocurrency exchange (NASDAQ) announced that it has purchased FairX, a cryptocurrency futures exchange. This acquisition is part of a plan to sell crypto derivatives to American traders.

FairX is the operational name for LMX Labs. It was established last year. The U.S. Commodity Futures Trading Commission regulates it.

Coinbase announced that they want to make crypto derivatives trading accessible to institutional customers and retailers.

In a blog posting on Wednesday, it stated that the development of transparent derivatives markets was a key inflection point for all asset classes and it would unlock additional participation in cryptoeconomy. This it did in a statement.

The trading of crypto derivatives has surged since institutional investors over the last 18 months have begun to embrace cryptocurrency trading. This presents big opportunities for platforms offering future and other options.

According to UK research CryptoCompare in November, crypto derivatives volume was $3.3 trillion. This accounts for nearly 55% of total crypto market.

The risk of trading in crypto options and futures is less than that of cash, and they are often offered by licensed platforms.

Institutional investors looking for exposure to crypto currencies are likely to find them appealing, as they can balance fast profits with the long-term risks associated with this emerging market.

According to the company, it is likely that the deal will close within the first quarter.

Coinbase shares ended at 1% less on Wednesday, after it registered its first day in net gain this year, Tuesday. It reached above $246 but it is still down 39% from April.

Premarket trading saw shares rise nearly 3% to $241.20

As bitcoin fell below $40,000. shares of companies related to blockchain dropped earlier in the week. This is still a significant drop from the record $69,000 that it hit in November 2017.