Creating what it calls the “first regulated market in bitcoin-related derivatives in Europe”, Eurex plans to offer bitcoin-backed exchange-traded note futures from 13 September.
The new ETN futures contract is derived from the BTCetc Bitcoin Exchange Traded Crypto, which in turn trades on the Frankfurt Stock Exchange. The contract will be traded in euro, with physical delivery in bitcoin ETNs.
“This set-up allows investors to track the price development of Bitcoins in a fully regulated on-exchange environment and based on a transparent price discovery of the underlying ETN. Both the underlying ETN, as well as the futures, trade, clear and settle on Deutsche Börse Group’s proven infrastructure,” writes Deutsche Börse-owned derivatives exchange Eurex in its press release.