Eurex, the specialist European derivatives exchange, has expanded its offering with the launch of Bitcoin ETN futures.

As part of the growth, Bitcoin ETN futures will become the first regulated market in Bitcoin-related derivatives in Europe.

Randolf Roth, Member of the Eurex Executive Board, commented: “There is significant demand from institutional investors to gain Bitcoin exposure in a secure and regulated environment. We are pleased to be the first regulated exchange to offer this innovative contract. 

“The new Bitcoin ETN futures enable investors to trade and hedge Bitcoin within Eurex’s proven trading and clearing infrastructure without the need to turn to unregulated crypto venues or set up a separate infrastructure, such as a crypto wallet. It is the logical extension of the ETN that already trades very successfully on Xetra.”

The futures contract is based on the BTCetc Bitcoin Exchange Traded Crypto and the Bitcoin ETN, which was equivalent to 1/1000th of a Bitcoin at launch and is fully backed by and redeemable in Bitcoin. 

Furthermore, Bitcoin ETN futures are centrally cleared like any other derivatives traded on Eurex. Eurex’s standard clearing, netting, and risk management processes thereby come into effect, mitigating counterparty risk and reducing operational costs for market participants.