cryptovibes.com
Bitcoin still lacks an exchange-traded fund, which is a product that various companies have been seeking for years now. However, while the ETF might still seem out of reach, the same cannot be said about ETN futures.
According to recent reports, Eurex, an international company offering derivatives exchange, will launch Bitcoin ETN futures and become the first regulated entity in Europe to offer BTC-related derivatives. The company, who is also a member of the Deutsche Borse Group, will allegedly roll out the new contract in less than a month, around September 13th.
Bitcoin ETN futures to arrive in Europe
From what is known, the ETN futures contract will be based on the BTCetc Bitcoin Exchange Traded Crypto. This is an asset that has already appeared on the Frankfurt Stock Exchange a while ago.
Randolph Roth, a member of the Eurex Executive Board, commented on the new move by saying that it was deemed the right thing to do, given a significant demand from institutional investors. Institutions across the globe are seeking Bitcoin exposure in a safe and regulated environment, and that includes investors in Europe.
With this move, Eurex will be the first regulated exchange to offer a contract that would satisfy this demand, which is a big thing for the company. Bitcoin ETN futures will allow investors to trade, as well as hedge Bitcoin within the company’s proven trading and clearing infrastructure.
There will be no need to use unregulated cryptocurrency venues, which are deemed by many as too risky. There will also be no need to set up separate infrastructure, like crypto wallets. That will also spare investors from having to spend time and money on familiarizing themselves with these technologies. In other words, they will be able to invest in ETNs as they always had, while still getting exposure to one of the world’s top-performing assets.
The new contract will be traded in EUR, and physically delivered in Bitcoin ETNs. Apart from the new contract, Eurex also features Ethereum ETNs, Bitcoin Cash ETNs, and Litecoin ETNs. This was made possible by the support of the leading European exchange for crypto ETNs — Xetra.