The leading European derivatives exchange Eurex announced the introduction of ETN futures on Bitcoin. We are thus witnessing the emergence of the first regulated market for Bitcoin derivatives in Europe.
The derivatives subsidiary of Deutsche Börse would like to give its customers access to Bitcoin in a regulated manner that is familiar to the stock exchange. Centrally organized access to the oldest cryptocurrency could above all help traditionally oriented investors with their investments.
Randolf Roth, member of the Eurex Executive Board, explains in a press release that BeInCrypto has received:
“There is great demand from institutional investors for access to Bitcoin in a safe and regulated environment. We are pleased to be the first regulated exchange to offer this innovative product. The new ETN futures on Bitcoin enable investors to trade and secure Bitcoin within the proven trading and clearing infrastructure of Eurex without having to turn to unregulated crypto exchanges or a separate infrastructure, such as a crypto wallet, need to build. This offer is the logical extension of the ETN, which is already very successfully traded on Xetra. “
At the same time, ETC Issuance is bringing a Bitcoin Exchange Traded Crypto product to Xetra. This investment product is also completely secured by Bitcoin.
Bradley Duke, CEO of ETC Group, stated:
“BTCE brings the transparency and investor protection that regulators and institutional investors need to the world of Bitcoin. Investors enjoy the benefits of trading and owning Bitcoin through a regulated security, while optionally redeeming Bitcoin if they so choose. We pride ourselves on listing this product on one of the leading European exchanges that offers people a safer and better way to invest in Bitcoin. “
Bitcoin adaptation and regulation in Europe
The new Exchange Traded Notes (ETNs) based on Bitcoin will be available from September 13th. The Bitcoin Futures are based on the BTCetc Bitcoin Exchange Traded Crypto, which we have found on the Frankfurt Stock Exchange Xetra since June 2020. The special feature: The Bitcoin ETN is completely secured by real Bitcoin stocks. On the Xetra exchange, customers also have access to ETNs for the crypto currencies Litecoin, Bitcoin Cash and Ethereum. And the offer is well received – in the first half of 2021 alone, orders worth a billion euros appeared in the order book.
For non-crypto investors, the usual access via the exchange infrastructure is certainly practical. Investors do not have to worry about safe storage. Another fear of institutional investors is under-regulation, according to a survey by MINDSMITH. Regarding regulation, a lot has changed in Europe in the last few months. Among other things, the new fund location law in Germany states that domestic special funds may invest up to 20 percent in crypto currencies.
Disclaimer of liability
All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general informational purposes only. Any action that the reader takes based on the information found on our website is entirely at your own risk.