Eurex is increasing the trusted path to crypto with the launch of Choices on FTSE Bitcoin Index Futures.
That is one other main milestone in Eurex’s ambition to supply safe entry to cryptocurrencies in a regulated market surroundings. Eurex was the primary trade in Europe to supply Bitcoin index futures in April 2023.
The cryptocurrency market has undergone a unstable interval up to now yr. This has highlighted the necessity of a reputable, protected, and controlled market supporting the buying and selling and threat administration of digital property. Institutional buyers have proven broad curiosity for this new providing, based mostly on a sturdy underlying index from our established index associate FTSE Russell, which is supported by Eurex Clearing, an AA-rated clearing home in Europe.
Randolf Roth, Member of the Government Board of Eurex Frankfurt AG:
“Buyers want strong buying and selling and clearing safeguards when participating within the crypto market. Eurex is a famend regulated trade, with a trusted platform and applicable safeguards providing multi-asset class buying and selling. With our prolonged crypto derivatives suite, we provide a trusted path to crypto.”
The brand new contracts are listed as Choices on Futures in EUR and USD, with the respective Bitcoin index future as underlying, equal to 1 Bitcoin. Each Choices and Futures expire on the identical time (17:00 CET) on the final Friday of the month. Alongside month-to-month and quarterly maturities, weekly expiring contracts may also be accessible to commerce.
FTSE Bitcoin Index (USD & EUR) is the reference charge for the ultimate settlement for the underlying futures contracts. It’s decided as the quantity time weighted common of the FTSE DAR Digital Asset Worth over the 15-minute interval earlier than the fixing time. Liquidity might be supported by orderbook and over-the-counter liquidity suppliers.
With the assist of Liquidity Suppliers and Clearing Members, Bitcoin index futures had been efficiently launched in April 2023. Since its introduction greater than 50,000 contracts and USD 1.3 bn notional had been traded. Bitcoin index Choices will allow buyers to hedge their Bitcoin publicity and deploy new buying and selling methods. Moreover, choices present buyers entry to the Bitcoin volatility threat premium in a regulated surroundings with institutional grade buying and selling and clearing safeguards.