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Bitcoin futures for the first time in Europe: USA still without Bitcoin ETF

The first Bitcoin (BTC) futures in Europe are coming out next month on the largest futures exchange on the continent, Eurex, an announcement confirms.

In a press release on Tuesday, ETC Group, a provider of digital asset-backed securities, announced that its Bitcoin ETN futures would be available from September 13th.

Growing institutional demand in Europe

The ETC Group already operates the world’s first exchange-traded Bitcoin product (ETP) with central billing called BTCetc Physical Bitcoin (BTCE).

This product was launched on the German stock exchange in June 2020. The company now has several crypto ETPs. Three of them are also to be listed on the Vienna Stock Exchange, as Cointelegraph reported.

This step was preceded by increased demand from investors for institutional products that work with Bitcoin and Altcoins. Europe has always been a friendlier environment than the United States. The US has not yet approved a Bitcoin exchange-traded fund (ETF).

As of next month, Eurex will be the first European provider of a futures contract based on a crypto ETP.

“Given the growing institutional demand for a secure investment in Bitcoin, we are pleased to be able to list these Bitcoin ETN futures on our regulated trading and clearing infrastructure on Eurex,” said Eurex board member Randolf Roth.

“This means that many more market participants can trade Bitcoin and hedge themselves with it. This new future will be treated like any other derivative contract with regard to central clearing, netting and risk management.”

At press time, Bitcoin was $ 49,700. This corresponds to a decrease of around 1 percent. Before that, he briefly climbed over $ 50,000.

The mood among the institutions is mixed

As Cointelegraph noted, sentiment among institutional investors is slowly turning again. They are gradually becoming more willing to include crypto in their portfolios.

In this context: Bitcoin again over 50,000 US dollars: Professional traders skeptical

However, institutional instruments such as the Grayscale Bitcoin Trust (GBTC) are lagging behind the rising spot prices. This indicates that demand is not yet as high as it was during the previous bull market.

The GBTC premium, as the premium for shares in the trust is called compared to the BTC spot price, continues to move in negative territory. This means that the shares are trading at a discount.

GBTC premium versus BTC / USD chart. Source: Bybt

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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