Eurex, a European derivatives exchange owned by Deutsche Boerse, has announced the launch of Bitcoin exchange traded note (ETN) futures in response to “significant demand from institutional investors.”
According to Eurex, the move will create Europe’s first regulated market for bitcoin-related derivatives.
The contracts, which will be available on September 13th, will be based on the Frankfurt Stock Exchange-listed BTCetc Bitcoin Exchange Traded Crypto (Ticker:BTCE).
According to Eurex, the derivative will provide access to the price of bitcoin in a regulated on-exchange and centrally cleared environment.
Since its debut on Xetra in June 2020, BTCE has been one of the most heavily traded contracts, according to the firm.
The contract will be traded in euros and physically delivered in bitcoin exchange-traded notes (ETNs).
“At launch, the Bitcoin ETN was equivalent to 1/1000th of a Bitcoin and is fully backed and redeemable in Bitcoin,” Eurex stated.
“There is significant demand from institutional investors to gain Bitcoin exposure in a secure and regulated environment,” said Randolf Roth, a Eurex executive board member.