Eurex has launched cryptocurrency derivatives trading with a Bitcoin exchange-traded note (ETN) futures product. The exchange, which is owned by German stock market operator Deutsche Boerse, officially began offering this type of trading on Monday. ETC Group, a crypto derivatives issuer based in London, developed the Bitcoin ETN futures contract. Eurex tweeted:
“As the first step in our portfolio of crypto derivatives, the offering is the first regulated market in Bitcoin-related derivatives in Europe.”
Futures contract based on physical Bitcoin
The euro-denominated Bitcoin ETN Futures contract is based on a Bitcoin exchange-traded product (ETP), the first product launched by ETC Group, known as Physical Bitcoin (BTCE). It makes it possible for investors to track Bitcoin price movements in a regulated environment. The contract is physically delivered in BTCE, which is fully backed by the premiere cryptocurrency. Every investor can convert it into Bitcoin instantly.
According to ETC Group CEO Bradley Duke, the most recent listing is a big step forward for financial institutions in terms of being able to gain exposure to crypto on regulated exchanges. He noted:
“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.”
ETP listed on SIX, Xetra, and other European exchanges
Just over a year ago, ETC Group listed its BTCE ETP product on Xetra, a Deutsch Boerse-operated digital stock exchange. It’s also listed on the SIX Swiss Exchange among others. In July 2021, ETC Group announced that they would offset the carbon footprint of BTCE by means of handpicked carbon credits to make up for the emissions connected to mining. Effectively, this means BTCE will be carbon neutral.
FINMA endorses digital asset marketplace on SIX
In related news, the FINMA (Swiss Financial Market Supervisory Authority) approved the launch of a digital asset marketplace on SIX. A central securities depository based on distributed ledger technology will also be launched.
21 Shares launches first Polkadot ETP on SIX
21 Shares launched the first exchange-traded product based on the Polkadot ecosystem in February of this year, again on SIX. Switzerland is one of the jurisdictions in the world that are most supportive of cryptocurrency transactions. In June, the Swiss changed their tax laws in an effort to make sure the current infrastructure would accommodate the growth of DTL and blockchain technologies to a sufficient degree.
