Eurex to Launch Bitcoin Index Futures
Posted by Colin Lambert. Last updated: March 22, 2023
Eurex says it will become the first exchange in Europe to offer Bitcoin index futures, with trading scheduled for 17 April 2023, in a move that Eurex says “represents a step forward in meeting investor needs for accurate price discovery, transparency, and consistency in the digital asset market”.
The exchange has developed the new contract in partnership with index provider FTSE Russell, and Digital Asset Research (DAR), its provider of digital asset data.
The exchange says the launch of what will be the FTSE Bitcoin Index Futures is a major milestone in Eurex’s ambition to offer safe and trusted access to cryptocurrencies in a regulated market environment. It adds that by partnering with FTSE Russell and DAR, Deutsche Börse Group’s derivatives exchange corresponds to the increasing demand for a cash settled index-based contract.
“Institutional investors have been waiting for a contract based on a robust underlying index from an established index partner, which is supported by an AA-rated clearing house in Europe,” Eurex states. “The new contract complements Eurex’s already listed BTCetc ETN Futures with physical delivery.”
The underlying FTSE Bitcoin Index reflects the settlement price of Bitcoin as determined by the FTSE DAR Reference Price. The new futures contracts are traded in EUR and USD and liquidity will be supported by orderbook and OTC liquidity providers.
“Investors need robust trading and clearing safeguards when engaging in the crypto market,” says Michael Peters, CEO of Eurex. “We are looking forward to cooperating with FTSE Russell and Digital Asset Research to jointly deliver superior transparency, consistency, and safeguards to this emerging asset class.”
Arne Staal, CEO of FTSE Russell, a London Stock Exchange Group (LSEG) business, adds, “Our digital asset indices apply the same rigorous index policy and governance framework used with our equity and fixed income products. Perhaps most importantly in this market, in collaboration with DAR, we have created a vetting methodology to set a standard for digital asset and exchange index inclusion, that offers consistent prices reflective of the real investable market to the investor community.”