Eurex will be listing Europe’s first Bitcoin futures product on September 13th, an initiative from digital asset provider ETC Group.
Whereas the U.S. is stagnant regarding the approval of an ETF, Europe is already moving ahead with the first Bitcoin futures launched by ETC Group, a number one supplier of digital asset-backed securities.
Europe’s First Bitcoin Futures
In keeping with an announcement, Eurex – Europe’s largest derivatives exchange – will list the first Bitcoin ETN (exchange-traded note) futures on September 13th, 2021.
Thus, it should allow traders to access future contracts based mostly on ETC Group’s BTCetc Physical Bitcoin (BTCE), the world’s first exchange-traded product. The push for a Bitcoin futures choice comes after institutional demand has soared in Europe:
“Given the rising institutional demand for secure exposure to Bitcoin, we’re delighted to start listing these Bitcoin ETN futures on our regulated trading and clearing infrastructure at Eurex.
This transfer will permit a better variety of market contributors to commerce and hedge Bitcoin, with this new future being handled in the identical approach as another derivatives contract in terms of central clearing, netting, and risk management,” said Randolf Roth, Eurex executive board member.
ETC Group, launched in June 2020, is now one of the world’s largest traded crypto ETPs with a number of corporations working there. In keeping with the corporate, the futures contract will be traded and physically delivered in BTCE, which is 100% backed by BTC.
Europe Ahead of the US
The regulatory setting within the U.S. hasn’t favored the crypto space, and now even less with the new infrastructure bill launched a couple of weeks ago. Regulatory bodies like the Securities and Exchange Commission are at the moment stagnating to approve a single BTC ETF utility.
In this regard, Europe is proving to be a friendlier environment for crypto products after institutional demand for products tied to cryptocurrencies skyrocketed compared to the U.S.
Despite the pessimism amongst traders within the States, Grayscale CEO Michael Sonnenschein stated a crypto ETF within the nation is extra a matter of “when, not if,” and value corrections of last month allowed long-term holders to accrue more BTC.
A number of European laws now favor cryptocurrencies more than ever. As reported on August 1st, German-based institutional funds will be able to allocate as much as 20% of their portfolios in digital assets. The initiative came after various local organizations demanded exposure to crypto-related products.