Bitcoin futures go live on Eurex, the largest derivatives exchange in Europe

Rick Steves

The new futures contract has gone live, trades in Euros, and is physically delivered in BTCE, which is 100% backed by bitcoin.

Eurex, the largest derivatives exchange in Europe, has introduced Bitcoin ETN Futures as the first step in Eurex’s portfolio of crypto derivatives.

Bitcoin ETN Futures, which has been created and launched by Eurex, is based on ETC Group’s BTCetc – ETC Group Physical Bitcoin (ticker: BTCE), the world’s most heavily traded Crypto ETP.

ETC Group is a specialist in digital asset-backed securities with over $1 billion AUM. The debut and live listing of Europe’s first Bitcoin Futures contract on Eurex is a milestone for both companies.

The new futures contract has gone live, trades in Euros, and is physically delivered in BTCE, which is 100% backed by bitcoin and can be readily redeemed by any investor for the underlying bitcoin.

BTCE launched on Deutsche Börse XETRA in June 2020 and is now listed on multiple European exchanges as well as becoming the first European Crypto ETP product to offset its carbon footprint earlier this year.

Bradley Duke, CEO of ETC Group said: “Today’s listing of Bitcoin Futures, based on ETC Group’s leading Bitcoin ETP, marks another major milestone in providing institutions with financial products that allow exposures to crypto on regulated exchanges. The selection of BTCE by Eurex, Europe’s largest derivatives exchange, further establishes ETC Group’sleadership in the crypto ETPs, and is recognition of the quality of our products and their world beating liquidity.”

The futures contract provides a fully regulated on-exchange environment for the tracking of the price of Bitcoin, based on a transparent price discovery of the underlying BTCE.

Bitcoin ETN futures are centrally cleared like any other derivatives traded on Eurex, with clearing, netting, and risk management processes assured by Eurex, mitigating counterparty risk and reducing operational costs for market participants.

Eurex is the European derivatives exchange owned by financial titan Deutsche Börse Group. The firm first announced the creation and launch of bitcoin exchange-traded note (ETN) futures in August, with the go-live scheduled for September 13.

Eurex’s new contract will be traded in euro and physically delivered in Bitcoin ETNs. The latter, which is equivalent to 1/1000th of a Bitcoin at launch, is fully backed by and redeemable in the primary cryptocurrency.

An ETN is a type of unsecured debt obligation payable to the contract holder with a set maturity date. ETNs holders receive a one-time payment on expiry date, based on the performance of the underlying asset, but they can also sell the contract any time on the open market.

In effect, Eurex bitcoin ETN futures provide investors with the opportunity to gain “regulated on-exchange” exposure to the performance of bitcoin without actually purchasing the leading crypto asset.

There are now three bitcoin ETNs listed on Germany’s Xetra platform. ETC Group was first listed in June 2020, followed by crypto ETP issuer 21Shares and US asset manager VanEck.

Read this next

Digital Assets

Binance executives sue Nigerian authorities over rights violation

Two senior executives from Binance have filed a lawsuit against against Nigeria’s national security adviser’s office and its anti-corruption agency, alleging violations of their fundamental rights.

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

<