Europe prepares to launch its first Bitcoin futures as U.S. ETFs are at an impasse

The first Bitcoin in the history of Europe (Bitcoin) Futures will be launched next month in Eurex, the largest derivatives market in continental Europe, as confirmed by the announcement.

In one Press release The digital asset-backed securities provider ETC Group announced on Tuesday that its Bitcoin ETN futures products will begin trading on September 13.

Europe emphasizes “increasing institutional demand”

ETC Group already operates the world’s first centrally cleared Bitcoin exchange traded product (ETP), called BTCetc Physical Bitcoin (BTCE).

Cointelegraph was launched on the Deutsche Börse in June 2020, and now the company has several crypto ETPs, three of which will also start trading on the Vienna Stock Exchange (Vienna Stock Exchange) in the future Report.

This move is due to increased investor demand for institutional products related to Bitcoin and altcoins. Europe has traditionally provided a friendlier environment than the United States. This is Hold back Over-approved Bitcoin exchange-traded funds (ETFs).

Therefore, the European Futures Exchange will custody the first European futures contract based on an encrypted ETP from next month.

“Given the growing demand for security exposure to Bitcoin by institutions, we are pleased to start listing these Bitcoin ETN futures on our regulated Eurex trading and clearing infrastructure,” commented Randolf Roth, member of the Eurex Executive Board.

“This move will allow more market participants to trade and hedge Bitcoin. In terms of central clearing, netting and risk management, this new future will be treated in the same way as any other derivative contract.”

At the time of writing, Bitcoin was trading at $49,700, which fell by about 1% the day after it briefly broke the $50,000 mark.

Mixed agency emotions linger

As Cointelegraph Noticed, The sentiment of institutional investors is slowly returning to support the exposure of the crypto portfolio.

Related: Professional traders are mildly skeptical about Bitcoin’s recent rebound to $50,000

In other words, institutional tools such as the Grayscale Bitcoin Trust (GBTC) have fallen behind the soaring spot price, which indicates that Bitcoin has not yet returned to the bull market level before it hit a record high in April.

GBTC premium—the additional cost of trust stocks relative to the BTC spot price—continues to hover in the negative zone, which is equivalent to stocks Discount deal.

GBTC premium and BTC/USD chart. Source: Bybt