Eurex owned by Deutsche Boerse launches Bitcoin ETN futures contract

A new derivatives exchange, Eurex with ETC group’s Bitcoin (BTC) exchange-traded note (ETN) future product, will debut in cryptocurrency derivatives trading. Eurex is owned by German stock market operator Deutsche Boerse.

Eurex launched its Bitcoin ETN futures contract on Monday. It is developed by London-based crypto derivatives issuer ETC Group.

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.

Eurex officially said: “As the first step in our portfolio of crypto derivatives, the offering is the first regulated market in Bitcoin-related derivatives in Europe.”

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.

Bradley Duke, CEO of ETC Group said, 

The latest listing marks another major milestone in providing institutions with financial products that enable exposure to crypto on regulated exchanges.

The selection of BTCE by Eurex, Europe’s largest derivatives exchange, further establishes ETC Group’s leadership in the crypto ETPs and is recognition of the quality of our products and their world-beating liquidity.

Investors would be able to check the price and development of Bitcoin in a regulated environment which would be physically available in the form of BTCE. BTCE, physical Bitcoin, is the centrally cleared Bitcoin exchange-traded product (ETP). The euro dominated Bitcoin ETN futures contract is also based on Bitcoin exchange-traded product (ETP).

ETC Group listed its BTCE ETP product on Xetra, a major digital stock exchange operated by Deutsche Boerse. The ETN futures will also be listed on the same platform.