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FRANKFURT (Dow Jones) – Eurex plans to introduce ETN futures on Bitcoin on September 13. With the new product, the derivatives subsidiary of Deutsche Brse gives its participants access to the price of Bitcoin in a regulated, exchange-traded and centrally processed environment. It is said that this will create the first regulated market for Bitcoin-related derivatives in Europe.
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.
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 operating costs for market participants.
“There is great demand from institutional investors for access to Bitcoin in a secure and regulated environment. We are delighted to be the first regulated exchange to offer this innovative product,” said Randolf Roth, member of the Eurex Executive Board.
In addition to the world’s first centrally cleared Bitcoin ETN on Xetra, Deutsche Brse has expanded its offering to include further ETNs on the crypto currencies Ethereum, Bitcoin Cash and Litecoin. With an average order book turnover of 1 billion euros in the first half of 2021, Xetra has established itself as the leading exchange for crypto ETNs in Europe, it is said.
DJG / mpt / raz
(END) Dow Jones Newswires
Aug 20, 2021 7:45 AM ET (11:45 AM GMT)