Eurex has become the first exchange in Europe to offer Bitcoin index futures, which will commence trading on 17 April 2023.
The German-based European derivatives exchange developed the new contract in partnership with global index provider FTSE Russell and institutional-grade digital asset data provider Digital Asset Research (DAR).
Launching FTSE Bitcoin Index Futures is a “major milestone” for the exchange as it seeks to offer safe and trusted access to cryptocurrencies in a regulated market environment.
Through the partnership with FTSE Russell and DAR, Eurex says the Deutsche Börse Group’s derivatives exchange corresponds to the increasing demand for a cash settled index-based contract.
According to the exchange, institutional investors have been waiting for a contract based on a robust underlying index from an established index partner, which is supported by an AA- rated clearing house in Europe.
The underlying FTSE Bitcoin Index reflects the settlement price of Bitcoin as determined by the FTSE DAR Reference Price. The new futures contracts are traded in EUR and USD.
Liquidity will be supported by orderbook and over-the-counter (OTC) liquidity providers — Eurex believes this to represent a step forward in meeting investor needs for accurate price discovery, transparency and consistency in the digital asset market.
Eurex CEO Michael Peters comments: "Investors need robust trading and clearing safeguards when engaging in the crypto market. We are looking forward to cooperating with FTSE Russell and Digital Asset Research to jointly deliver superior transparency, consistency and safeguards to this emerging asset class.”
Arne Staal, CEO of FTSE Russell, a London Stock Exchange Group (LSEG) business, says: “We are excited for this next step in the expansion of the digital asset ecosystem to meet institutional investor client risk management needs. Our digital asset indices apply the same rigorous index policy and governance framework used with our equity and fixed-income products.
“Perhaps most importantly in this market, in collaboration with DAR, we have created a vetting methodology to set a standard for digital asset and exchange index inclusion, that offers consistent prices reflective of the real investable market to the investor community.”
