Europe to issue the world’s first Bitcoin futures

Bitcoin price today
Bitcoin price today

An statement indicates that Europe’s first Bitcoin (BTC) futures will begin trading next month on the continent’s largest derivatives exchange, Eurex.

ETC Group announced in an Aug. 24 news release that their Bitcoin ETN Futures product will begin trading on Sep. 13.

The ETC Group already offers the first centrally cleared Bitcoin exchange-traded product (ETP), dubbed BTC etc Physical Bitcoin (BTCE).

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Launched on Deutsche Boerse in June 2020, the firm now offers various crypto ETPs, three of which will soon begin trading on the Wiener Boerse — Vienna’s stock exchange, according to Cointelegraph.

The actions come amid growing investor demand for institutional products related to Bitcoin and altcoins, with Europe historically providing a more hospitable environment than the United States, which is dragging its feet on approving a Bitcoin exchange-traded fund (ETF).

From next month, Eurex will host the first European futures contract based on a crypto ETP.

“Given the growing institutional demand for secure exposure to Bitcoin, we are delighted to begin listing these Bitcoin ETN futures on our regulated trading and clearing infrastructure at Eurex,” Eurex executive board member Randolf Rolf commented. 

“This move will allow a greater number of market participants to trade and hedge Bitcoin, with this new future being treated in the same way as any other derivatives contract in terms of central clearing, netting, and risk management.”

Bitcoin traded at $49,700 at the time of writing, down around 1% on the day after briefly passing the $50,000 mark.

Institutional instruments like as the Grayscale Bitcoin Trust (GBTC) have trailed behind increasing spot prices, indicating that demand has not yet returned to bull market levels seen prior to Bitcoin’s April record highs.

The GBTC premium — the additional cost of the Trust’s shares above the current price of bitcoin — has remained negative, implying that the shares are trading at a discount.

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