Eurex Bitcoin Futures volume exceeds EUR 100M since inception
So far, 2022 marked quite an impressive year for the BTCetc ETN Futures, Eurex announces. The traded notional exceeded EUR 100 million. This level marks a rise of 408% compared to last year’s EUR 20 million.
Since their launch in September 2021, the traded notional of these contracts climbs up to EUR 120 million. The open interest is presently at approximately EUR 10 million notional.
The increase in volatility in the markets has triggered higher activity in the product, Eurex explains.
With this contract, Eurex offers clients access to the price of Bitcoin in a regulated on-exchange and centrally cleared environment.
The futures contract is based on the BTCetc Bitcoin Exchange Traded Crypto (ISIN: DE000A27Z304), which is listed on the Frankfurt Stock Exchange and has been among the most heavily traded ETF/ETN contracts on Xetra since its start in June 2020. The Bitcoin ETN was equivalent to 1/1000th of a Bitcoin at launch and is fully backed by and redeemable in Bitcoin. The contract is traded in euro and physically delivered in Bitcoin ETNs.
This set-up allows investors to track the price development of Bitcoins in a fully regulated on-exchange environment and based on a transparent price discovery of the underlying ETN. Both the underlying ETN, as well as the futures, trade, clear and settle on Deutsche Börse Group’s proven infrastructure. 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.