Eurex to List Bitcoin ETN Futures

One of Europe’s leading specialist providers of digital asset-backed securities, ETC Group, announced that it will list Bitcoin ETN Futures on Eurex on September 13.

The list will be made on the basis of ETN’s flagship product, BTCetc. The event will mark the first time that futures contracts have been made available to investors on a Crypto ETP.

According to reports, the listing is also important as it will be the first regulated market for Bitcoin-related derivatives in Europe. Bitcoin ETN futures will allow investors to trade and hedge Bitcoin within Eurex’s proven trading and clearing infrastructure. The platform means they can bypass unregulated crypto sites and avoid setting up a separate infrastructure such as a crypto wallet.

The new agreement with Deutsche Börse Group The derivative branch therefore provides clients with access to the price of Bitcoin in a secure and regulated environment on the stock exchange and centrally regulated.

The contract is based on the BTCetc Bitcoin Exchange Traded Crypto (ISIN: DE000A27Z304), which has been one of the most traded ETF / ETN contracts. on Xetra since its listing on the Frankfurt Stock Exchange in June 2020.

Opportunities for Bitcoin Investors

The move also allows investors to monitor Bitcoin price movements in a regulated environment that allows transparent price discovery of the underlying ETN (Exchange Traded Notes) as well as clearing, trading and settlement on the proven infrastructure of the Deutsche Börse group.

Reports suggest that Eurex’s risk management, clearing and clearing processes will apply, reducing costs for market participants and mitigating the risks typically associated with cryptocurrency trading.

Bitcoin ETN Futures

Bitcoin ETN Futures has been listed on several European exchanges and is currently the most traded crypto ETP in the world. The new futures contract will be traded in euros and physically delivered in BTCE, which is supported by Bitcoin and can be redeemed by investors for the underlying bitcoin.

Speaking of development, Bradley Duke, CEO of ETC Group described the list as a game changer. He said, “It firmly establishes BTCE as the go-to Bitcoin ETP and the go-to product for Bitcoin price discovery. We see the selection of BTCE by Europe’s largest derivatives exchange as recognition of the product’s quality and unsurpassed liquidity.

He continued, “Also, because BTCE is fully fungible with the underlying bitcoin, it means physical settlement of the futures contract is activated through BTCE’s standard create / redeem mechanism.”

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

He added: “This move will allow more market players to trade and hedge Bitcoin, as this new future is treated the same as any other derivative contract in terms of central clearing, clearing and management. risks.”

Main image credit: Getty

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