In Brief:
- This listing marks the first time futures contracts are available for investors on a crypto ETP in Europe.
- Bitcoin ETN Futures is based on ETC Group’s BTCetc™ – ETC Group Physical Bitcoin.
Eurex, Europe’s largest derivatives exchange, will list Bitcoin ETN Futures of the ETC group on September 13th. The listing, reportedly, will be the first time futures contracts are available for investors on a Crypto ETP in Europe.
Randolf Roth, a Member of the Eurex Executive Board, mentioned how the move would allow a greater number of market participants to trade and hedge Bitcoin. Roth said this was because it would be treated in the same way as any other derivatives contract.
The ETN is based on ETC Group’s BTCetc™ – ETC Group Physical Bitcoin. The new futures contract will be traded in Euro. They will be physically delivered in BTCE. This means bitcoin 100% backs up the contract. Investors can also readily redeem the contract for the underlying BItcoin.
Randolf Roth, Member of the Eurex Executive Board said “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”.
Bradley Duke, CEO of ETC Group, also highlighted the potential of settling the futures contracts through BTCE’s redemption mechanism. The Chief Executive then said that Eurex’s listing of the Bitcoin ETN futures, firmly establishes BTCE as the benchmark Bitcoin ETP and go-to product for Bitcoin price discovery.
Also Read: ETC Group’s Crypto ETPs to be Listed on The Vienna Stock Exchange
BTCE’S primary listings trade on Deutsche Börse’s ETN trading segment from 18th June 2020. The setup allows investors to track Bitcoin’s price development in a fully regulated on-exchange environment. It is completely based on transparent price discovery of the underlying BTCE. Eurex’s standard clearing, netting, and risk management processes reduce counterparty risk operational costs for market participants. This would centrally clear the Bitcoin ETN futures just like any other derivatives traded on Eurex.
