Europe Prepares to Launch First Bitcoin Futures Amid US ETF Stalemate
Aug 24, 2021
An statement reveals that the continent's largest derivatives exchange, Eurex, will issue Europe's first-ever Bitcoin futures next month.
ETC Group, a supplier of digital asset-backed securities, said on Tuesday that its Bitcoin ETN Futures product would begin trading on September 13.
Europe Highlights “Growing Institutional Demand”
The ETC Group already runs BTCetc Physical Bitcoin, the world's first centrally cleared Bitcoin exchange-traded product (ETP) (BTCE).
Several crypto ETPs from Deutsche Boerse have been launched since June 2020, with three of them set to begin trading on the Wiener Boerse — Vienna's stock exchange — in the near future, according to Cointelegraph.
The developments come amid rising investor demand for institutional Bitcoin and altcoin products, with Europe typically being more welcoming than the United States, which is dragging its feet on approving a Bitcoin exchange-traded fund (ETF).
Starting next month, Eurex will host the first European futures contract based on a crypto ETP.
“We are happy to begin listing these Bitcoin ETN futures on our regulated trading and clearing infrastructure at Eurex, given the rising institutional demand for secure exposure to Bitcoin,” Eurex executive board member Randolf Roth said.
“By treating this new future like any other derivatives contract in terms of central clearing, netting, and risk management, a larger number of market players will be able to trade and hedge Bitcoin.”
Around the time of writing, Bitcoin was trading at $49,700, down about 1% on the day after briefly breaking the $50,000 barrier.
Mixed Institutional Sentiment Lingers
Institutional investor attitude is steadily returning to support crypto portfolio exposure, according to Cointelegraph.
Institutional instruments like the Grayscale Bitcoin Trust (GBTC) have trailed behind rising spot prices, indicating that adoption has not yet returned to bull market levels seen before Bitcoin's all-time highs in April.
The GBTC premium — the additional cost of the Trust’s shares compared to BTC’s spot price — continues to hover in negative territory, equating to the shares trading at a discount.
Subscribe Our Newsletter
Stocks were down on Monday as investors expected the Federal Reserve's fiscal policy pronouncement later this week. The S&P 500 fell below last week's record high.
Stocks
Milena
Stock Adobe Has Dropped as Its Revenue Forecast Falls Below Wall Street’s Expectations.The graphics-software behemoth posted higher-than-expected adjusted fourth-quarter profitability but a lower-than-expected revenue projection.
Stocks
Alexander
The Best Crypto Wallets of 2022: Top 5 Picks2022 was a tough year for the crypto industry as the crypto winter and bear markets took their toll. After the collapse of huge and well-known crypto projects like the FTX exchange and the subsequent distrust of centralized exchanges, investors looked for alternative ways to store and manage their crypto assets.
Blockchain