“Eurex brings a new dimension to digital asset trading with the introduction of Bitcoin index options, offering investors a unique opportunity to navigate the exciting world of cryptocurrencies within a regulated and transparent framework.”
Eurex, the European derivatives exchange, is set to launch Options on FTSE Bitcoin Index Futures on October 23, 2023. The addition of these options comes after the successful introduction of Bitcoin index futures earlier this year and is another step towards providing regulated access to digital assets.
The demand for a secure and regulated trading environment in the crypto market has been on the rise, especially among institutional investors. Eurex aims to meet this demand by partnering with FTSE Russell, an established index partner, and leveraging the services of Eurex Clearing, a reputable clearing house in Europe.
By working with FTSE Russell, Eurex ensures that the new options will have a strong governance framework in place, similar to their equity and fixed-income products. The options will be underpinned by a robust vetting methodology developed in collaboration with Digital Asset Research (DAR).
These new options will be available in both USD and EUR, with each contract equivalent to one Bitcoin. Traders will have a range of expiry options, including monthly, quarterly, and weekly maturities, with options and futures expiring at 17:00 CET on the last Friday of the month.
Liquidity for these options will be supported by order book and over-the-counter providers, ensuring a smooth trading experience for investors.
The introduction of Bitcoin index options is expected to provide investors with more avenues for hedging their Bitcoin exposure, as well as offering a way to capitalize on Bitcoin’s volatility in a regulated environment. Since the introduction of Bitcoin index futures in April 2023, Eurex has seen significant trading activity, with over 50,000 contracts traded, amounting to USD 1.3 billion in notional value.
This latest addition to Eurex’s crypto derivatives suite could act as a catalyst for wider institutional adoption of cryptocurrencies. By offering a regulated path to crypto trading, Eurex is helping to legitimize digital assets and provide a higher degree of safety and transparency that may attract more traditional investors into the crypto space.
The partnership with FTSE Russell adds credibility and governance to the products, ensuring they meet the highest institutional standards.
In summary, Eurex’s entry into Bitcoin index options could be a turning point for institutional crypto trading. As the demand for secure and regulated crypto trading platforms continues to grow, Eurex is positioning itself as a trusted player in this evolving market.
The launch of Options on FTSE Bitcoin Index Futures expands Eurex’s product offerings and opens up opportunities for hedging and strategy optimization in a market known for its volatility.
