While the U.S. regulators are still reluctant regarding the approval of an ETF, Europe is already moving ahead with the first Bitcoin futures launched by ETC Group, a leading provider of digital asset-backed securities. According to an announcement, Europe’s largest derivatives exchange, Eurex, will list the first Bitcoin ETN (exchange-traded note) futures on September 13th, 2021. The U.S SEC is yet to approve any Bitcoin ETF in the country.
The push for a Bitcoin futures option comes after institutional demand has soared in Europe.
The new BTC ETF will enable investors to access future contracts based on ETC Group’s BTCetc Physical Bitcoin (BTCE), the world’s first exchange-traded product. The push for a Bitcoin futures option comes after institutional demand has soared in Europe. Randolf Roth, Eurex executive board member, 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.” “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,” he added.
Futures contract will be traded and physically delivered in BTCE.
ETC Group, launched in June 2020, is now one of the world’s largest traded crypto ETPs with several firms operating there. According to the company, the futures contract will be traded and physically delivered in BTCE, which is 100% backed by BTC. In comparison with the U.S, Europe is proving to be a friendlier environment for crypto products after institutional demand for products tied to cryptocurrencies skyrocketed. German-based institutional funds will be able to allocate as much as 20% of their portfolios in digital assets.