Eurex, the leading European derivatives exchange, announces the introduction of ETN futures on Bitcoin. With the new product, the derivatives subsidiary of Deutsche Börse enables its participants to access the price of Bitcoin in a regulated, exchange-traded and centrally processed environment.
The launch of the new product is planned for September 13, 2021. The futures are based on the BTCetc Bitcoin Exchange Traded Crypto (ISIN: DE000A27Z304), which is listed on the Frankfurt Stock Exchange and has been one of the most frequently traded ETF / ETN contracts on Xetra since its introduction in June 2020. The Bitcoin ETN was equivalent to one thousandth of a Bitcoin when it was introduced and is fully secured and redeemable in Bitcoin. The new future is traded in euros and physically made available in Bitcoin ETNs.
First regulated market for Bitcoin-related derivatives in Europe
Market participants can thus follow the price development of Bitcoins in a fully regulated exchange environment, which follows the transparent pricing process of the underlying ETN. Both the underlying ETN and the futures are traded, booked and processed via the established infrastructure of Deutsche Börse Group. Like all other derivatives traded on Eurex, ETN futures on Bitcoin are cleared centrally. The standard processes for settlement, clearing and risk management are used. This reduces the counterparty’s default risk and the operational costs for market participants.
Great demand from institutional investors
Randolf Roth, member of the Eurex Executive Board, says: “There is a great demand from institutional investors for access to Bitcoin in a secure and regulated environment. We are pleased to be the first regulated exchange to offer this innovative product. The new ETN futures on Bitcoin enable Bitcoin to be traded and secured within the proven trading and clearing infrastructure of Eurex without having to turn to unregulated crypto exchanges or build a separate infrastructure such as a crypto wallet. This offer is the logical extension of the ETN, which is already very successfully traded on Xetra. “
More ETNs on other crypto currencies in the Eurex range
In addition to the world’s first centrally cleared Bitcoin ETN on Xetra, Deutsche Börse has expanded its offering to include further ETNs for the crypto currencies Ethereum, Bitcoin Cash and Litecoin. With an average order book turnover of one billion euros in the first half of 2021, Xetra has established itself as the leading exchange for crypto ETNs in Europe. (kb)