Eurex, a new forerunner in Europe – The Eurex exchange will list the first Bitcoin (BTC
) derivative product launched by the ETC Group in Europe in September 2021. This will give European institutional investors access to a regulated product to gain exposure to the king of cryptocurrencies.
Bitcoin ETN futures: Eurex and ETC Group pave the way
Europe’s largest derivatives exchange Eurex announced in an August 23 statement
that it will list the first Bitcoin ETN futures on September 13, 2021. This first European Bitcoin futures product is an initiative of ETC Group, the cryptocurrency-backed asset provider. It is based on ETC Group’s BTCetc (BTCE) which is backed by real bitcoins, 100%. <img width=”536″ height=”282″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%20536%20282’%3E%3C/svg%3E” alt=’Twitter post by Gregory Raymon announcing that the first European Bitcoin ETN futures contract, launched by ETC Group, will be listed on Eurex in September 2021″ /><img width=”536″ height=”282″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/08/image-52..png” alt=’Twitter post by Gregory Raymon announcing that the first European Bitcoin ETN futures contract, launched by ETC Group, will be listed on Eurex in September 2021″ />Post by Gregory Raymond – Source: Twitter As
a point of clarification, just like ETFs (exchange traded funds), ETNs (exchange traded notes)
replicate the performance of a stock index. But unlike ETFs, ETNs are not funds, but debt securities, similar to bonds. ETNs are issued by banks that commit to paying the return of an index at a predefined maturity.
As Randolf Roth, a member of the Eurex executive committee, points out:
“Given the growing demand from institutions for secure exposure to bitcoin, we are excited to begin quoting these Bitcoin ETN futures contracts on our regulated trading and clearing infrastructure at Eurex.”
Bitcoin and institutions: a more lenient Europe
The regulatory climate framing products allowing indirect exposure to Bitcoin would therefore be milder in Europe than in the US. As filings for the launch of a Bitcoin ETF pile up on the desks of the US SEC, the Commission continues to j
and doesn’t seem to be in a hurry to make a decision on these requests. <img width=”1920″ height=”1080″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%201920%201080’%3E%3C/svg%3E” alt=’Bitcoin facing Europe” /><img width=”1920″ height=”1080″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/08/bitcoin-europe-1920×1080..jpg” alt=”Bitcoin facing Europe” />
SEC Chairman Gary Gensler’s commencement speech in early August 2021 that hinted at an opening for Bitcoin ETFs based exclusively on Chicago Mercantile Exchange (CME) BTC futures contracts was not followed by any concrete action at this time
This first Bitcoin derivative contract in Europe will soon see the light of day, as Binance announced at the end of July 2021 to its European customers the phasing out of its derivatives products
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