Eurex, Europe’s largest exchange of derivatives. Today announced the introduction of Bitcoin ETN future developments. Furthermore, the new contract gives customer’s access to Bitcoin pricing in a regulated on-exchange and clean centralized environment via the derivative arm of Deutsche Börse Group. This offer will be Europe’s first regulated market for Bitcoin derivatives.
Accordingly, the new deal, scheduled to start on 13 September. Moreover, the futures contract is based on the BTCetc Bitcoin Exchange Traded Crypto, a product listed on the Frankfurt Stock Exchange (ISIN: DE000A27Z304). Also, one of the ETF/ETN contracts traded frequently on Xetra since its inauguration in June 2020.
The Bitcoin ETN was 1/1000th Bitcoin at debut and fully supported and thus could redeem in Bitcoin. Also, physically delivered in Bitcoin ETNs, the new futures contract, traded in the euro.
Randolf Roth, Member of the Eurex Executive Board, said:
“There is significant demand from instutional investors to gain Bitcoin exposure in a secure and regulated environment. We are pleased to be the first regulated exchange to offer this innovative contract. The new Bitcoin ETN futures enable investors to trade and hedge Bitcoin within Eurex’s proven trading and clearing infrastructure without the need to turn to unregulated crypto venues or set up a separate infrastructure, such as a crypto wallet. It is the logical extension of the ETN that already trades very successfully on Xetra.”
Total Control of Investors
Investors may monitor the Bitcoins’ price evolution in a fully regulated on-exchange environment based on a transparent price discovery of the underlying ETN. Both the underpinning ETN and the futures trade clear and settle on the established infrastructure of the Deutsche Börse Group.
Like any other Eurex derivatives, Bitcoin ETN futures are centrally cleared. Eurex’s standard procedure for clearing, netting, and risk management comes into force. Minimizing the risks of counterparties and decreasing market participants’ operating expenses.
