Hassan Maishera
Institutional investors are seeking more ways to gain access to the cryptocurrency market, leading to the rise of Bitcoin futures.
ETC Group wants to launch a Bitcoin ETN Futures
Bitcoin futures gives investors indirect access to the leading cryptocurrency. Due to regulatory reasons, some institutional investors can’t get direct access to Bitcoin, and they rely on exchange-traded funds and notes to gain access to them.
ETC Group has announced that it is set to launch the first Bitcoin ETN futures in Europe. In a blog post earlier today, the firm said, “ETC Group, Europe’s leading specialist provider of innovative, digital asset-backed securities, announces that Eurex, Europe’s largest derivatives exchange, will list Bitcoin ETN Futures on 13 September 2021 based on its flagship product BTCetc. This will be the first time futures contracts are available for investors on a Crypto ETP in Europe.”
According to the firm, the new futures contract will be traded in Europe. However, it would be physically delivered in BTCE. The futures contract is 100% backed by BTC and can be readily redeemed by investors for the underlying bitcoin.
Bradley Duke, CEO of ETC Group, said this latest development is a game-changer for the firm as it looks to develop more Bitcoin-related products in the coming years. “We see the selection of BTCE by Europe’s largest derivatives exchange as recognition of the quality of the product and its world-beating liquidity. Also, because BTCE is fully fungible with the underlying bitcoin, it means the physical settlement of the futures contract is enabled through BTCE’s standard creation/redemption mechanism,” he added.
The United States SEC continues to delay launching a Bitcoin-related exchange-traded fund (ETF). So far, nine firms have submitted proposals for a Bitcoin ETF and three other Ether ETFs. Furthermore, five firms have filed with the SEC to launch a Bitcoin Futures ETF. However, the regulatory agency is still looking at the proposals and is yet to approve any of them.
