- The first BTC futures contract in Europe will launch on 13th September 2021
- The futures contract is based on ETC Group’s BTCE
- Eurex is the largest derivatives exchange in Europe
YEREVAN (CoinChapter.com) — Europe is preparing for the launch of the continent’s first-ever Bitcoin futures. According to the ETC Group, Eurex will list BTC ETN Futures on 13th September 2021. Eurex is Europe’s largest derivatives exchange.
A boost for Bitcoin
The launch of the BTC ETN features will provide a huge boost to the coveted coin.
The futures contract is based on ETC Group’s BTCetc Physical Bitcoin ETP (BTCE). The BTCE exchange-traded product launched on Deutsche Borse XETRA in June 2020. Since its launch, several European exchanges have listed it. Among the ETPs, BTCE is the most heavily traded.
In what comes as a major boost to BTC, investors will trade the new futures contract in Euros. Additionally, all traded futures are physically delivered in BTCE. ETC Group’s BTCetc Physical Bitcoin ETP (BTCE) is 100% backed by bitcoin. Investors have the option to redeem their BTCE for the underlying bitcoin.
Randolf Roth, a Member of the Eurex Executive Board credited increasing demand from institutional investors for the latest developments. According to Roth, several investors wanted to gain exposure to Bitcoin but safety concerns kept them at bay.
“The new Bitcoin ETN futures enable investors to trade and hedge Bitcoin within Eurex’s proven trading and clearing infrastructure without the need to turn to unregulated crypto venues or set up a separate infrastructure, such as a crypto wallet,”Roth said.
Another safe alternative for investors?
Since the bearish market in May, institutional investors have played safe when it comes to the crypto industry. Fear of market volatility has prevented them from investing directly in assets, giving a boost to crypto Exchange Traded Funds (ETF).
However, while investors are slowly regaining confidence in cryptos, the futures contract gives them another opportunity to back an asset, albeit indirectly.
Calling the listing on Eurex exchange “a gamechanger”, Bradley Duke, the CE of ETC Group claimed that the selection of the company is a direct endorsement by Europe’s largest derivatives exchange.
“Also, because BTCE is fully-fungible with the underlying bitcoin, it means physical settlement of the futures contract is enabled through BTCE’s standard creation/redemption mechanism,”Duke added.
As Eurex prepares to list BTC futures, the token will certainly stand to benefit. With the backing of the ETC Group and the popularity of the Eurex exchange, the launch brings the world’s largest coin to a new pool of investors.
In the long run, the development is sure to give more power to BTC in the market.