The Eurex exchange will list the first Bitcoin derivative (BTC) launched by 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.
ETN Bitcoin futures: Eurex and ETC Group lead the way
Europe’s largest derivatives exchange Eurex announced in an Aug. 23 statement that it will list the first Bitcoin ETN futures contracts on Sept. 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%.
Gregory Raymon’s Twitter post announcing that the first European Bitcoin ETN futures contract, launched by ETC Group, will be listed on Eurex in September 2021
Publication by Gregory Raymond – Source: Twitter
For clarification, just like ETFs (exchange traded funds), ETNs (exchange traded notes) replicate the performance of a stock market 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 that allow indirect exposure to Bitcoin would therefore be milder in Europe than in the United States. While filings for the launch of a Bitcoin ETF are piling up on the desks of the US SEC, the Commission continues to play it safe and does not seem to be in a hurry to decide on these applications.
SEC Chairman Gary Gensler’s commencement speech in early August 2021, which hinted at an opening for Bitcoin ETFs based exclusively on Chicago Mercantile Exchange (CME) BTC futures contracts, has not been followed by any concrete action as of yet.
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.
