Europe Prepares For First Bitcoin Futures Launch Amid US ETF Deadlock

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Europe’s very first Bitcoin (BTC) futures contract will launch next month on the continent’s largest derivatives market, Eurex, an announcement confirms.

In a press release on Tuesday, digital asset-backed securities provider ETC Group said its Bitcoin ETN Futures product will begin trading on September 13.

Europe highlights growing institutional demand

ETC Group already operates the world’s first exchange-traded Bitcoin (ETP) product, known as BTCetc Physical Bitcoin (BTCE).

Launched in June 2020 on Deutsche Boerse, there are now several of the company’s crypto ETPs, three of which will also start trading on the Wiener Boerse Viennas exchange in the future, Cointelegraph reported.

The moves come amid increased investor demand for institutional products linked to Bitcoin and altcoins, with Europe traditionally providing a more user-friendly environment than the United States, which is dragging its feet on the approval of a traded fund. stock exchange (ETF) Bitcoin.

Eurex will thus host the first European futures contract based on a crypto ETP from next month.

Given the growing institutional demand for secure exposure to Bitcoin, we are delighted to begin listing these Bitcoin ETN futures on our regulated trading and clearing infrastructure at Eurex, commented Randolf Roth, Board Member at Eurex. administration of Eurex.

This move will allow more market participants to trade and hedge Bitcoin, with this new future being treated the same as any other derivative contract in terms of central clearing, clearing, and risk management.

Bitcoin was trading at $ 49,700 at the time of writing, down around 1% the same day after briefly breaking above the $ 50,000 mark.

A mixed institutional sentiment persists

As Cointelegraph noted, institutional investor sentiment is slowly returning in favor of crypto portfolio exposure.

Related: Professional Traders Are Slightly Skeptical Of Bitcoin’s Recent Return To $ 50,000

That said, institutional instruments like the Grayscale Bitcoin Trust (GBTC) have lagged behind the surge in spot prices, signaling that absorption has not yet returned to the bullish market levels seen before historic highs. of Bitcoin in April.

The GBTC premium, the additional cost of Trusts shares over the spot price of BTCs, continues to hover in negative territory, which equates to stocks trading at a discount.

GBTC premium against BTC / USD chart. Source: Bybt

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