August 24, 2021, | AtoZ Markets–Europe will pioneer the launch of a Bitcoin futures product, while the United States waits. Europe’s new Bitcoin (BTC) futures will launch next month on the continent’s largest derivatives market, Eurex, an announcement by ETC Group confirms.
In a press release, digital asset-backed securities provider ETC Group said that its Bitcoin ETN Futures product will begin trading on September 13.
Meanwhile, ETC Group already operates the first centrally authorized Bitcoin exchange-traded product (ETP), known as BTCetc Physical Bitcoin (BTCE).
Edt was launched in June 2020 on Deutsche Boerse, and there are now several crypto ETPs from the company, three of which will also start trading on Wiener Boerse, the Vienna Stock Exchange, in the future, Cointelegraph reported.
Therefore, Eurex will host the first European futures contract based on a crypto ETP starting next month.
What Does the Statement Say?
1.The new futures contract will be traded in Euros and physically delivered in BTCE, which is 100% backed by bitcoin and can be readily redeemed by any investor for the underlying bitcoin.
2.BTCE is fully fungible with the underlying bitcoin, which means the physical settlement of the futures contract is enabled through BTCE’s standard creation/redemption mechanism.
3.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.
4.ETC Group ( www.etc-group.com ) is specialized in developing innovative digital asset-backed securities such as BTCetc (BTCE) and ETHetc (ZETH) which are currently listed on Deutsche Börse, Euronext, SIX, AQUIS UK, and Wiener Börse
5.ETC Group is backed by several major London-based financial institutions. Shareholders include firms such as XTX Ventures, the venture capital arm of electronic market-making firm XTX Markets.
On a short-term chart, we can see that the Bitcoin price has been retreating after reaching $50463.94 during the previous trading day.
Currently, the price should remain above $40869.08 to sustain its recovery.
However, on the bearish side, the next important level to consider is $43202.02.
News of U.S. restrictions on Chinese companies, and Japan’s new controls on cryptocurrencies have been affecting the price substantially.
According to a report by local media outlet Jiji Press, the Japanese financial markets regulator has already initiated discussions and debates on the new crypto laws. It is intending to bring the new regulations around risky digital assets as early as summer next year.
The motive of the new laws would be to bring stability to the digital currency industry without hampering the development of crypto projects.
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