Cryptocurrency brokerage firm Genesis Global Capital announced the completion of its first transaction, which will pave the way for new institutional crypto futures products.
Genesis used the issued Bitcoin futures contract to execute the first over-the-counter (OTC) block trade, that is, the basis trading (BTIC) transaction at the close of the index Chicago Mercantile Exchange (CME)According to a report on September 26, the transaction was conducted in cooperation with Akuna Capital, a derivatives market maker. announcement.
This is the first time BTIC has been used in cryptocurrencies because it is more commonly used in the stock market. This form of trading allows investors to buy and sell futures contracts at a price based on the index’s closing price at the end of the day.
Tim McCourt, Global Head of Stock Index and Alternative Investment Products at CME Group, said that this product is the next step to provide more exposure to CME Group’s Bitcoin derivatives and Ethereum futures. Ether contract was launched in FebruaryHe elaborated on the advantages of this new trading tool and explained:
“BTIC enables market participants to trade basis more effectively, while at the same time providing real-time price discovery and a regulated market that improves trading accuracy for institutional participants who want to optimize their holdings between the futures and spot markets.”
Genesis provides liquidity for CME Group’s BTC and ETH futures and options products.
May, the CME Group launches micro bitcoin futures This is a contract worth 0.1 BTC. This product is designed to allow institutional traders to hedge the risks of crypto assets.
As of the end of June, the product has More than one million trading contracts This shows that institutional investors who are still testing the waters have a high demand for smaller cryptocurrency positions. This latest product is another example of providing wealthy investors with diversified options to access the crypto market.