CFTC approves Eurex’s FTSE bitcoin index futures

With this move, Eurex has become the first exchange to offer bitcoin index futures in Europe.

The U.S. Commodities Futures Trading Commission (CFTC) approved the Eurex FTSE bitcoin index futures, with trading for US-based investors beginning yesterday (29 May).

Trading began earlier on 17 April outside of the US. The contract was developed in collaboration with FTSE Russell and Digital Asset Research (DAR).

Speaking in an announcement, Eurex highlighted how this move is a further step towards offering secure and trusted access to cryptocurrencies within a regulated market environment.

It added that, from now, US participants can will benefit from additional trading and hedging opportunities. This includes access to more participants and liquidity pools during European, North American, and APAC hours.

This approval means that Eurex is the first exchange in Europe to offer bitcoin index futures. The new futures contracts trade in both euros and US dollars, has a contract multiplier equivalent to one bitcoin (BTC), and cash settlement on expiry with no position limits.

According to the business, the contracts are a demonstrable step forward in meeting the needs of investors within the digital assets market in terms of transparency, accurate price discovery, and consistency.

Michael Lie, head of digital asset trading at Flow Traders, said: “We welcome Eurex, one of the major derivatives exchanges, to expand its digital asset offering, which strengthens the belief of the acceptance and adoption of digital assets.”

He further emphasised: “The approval of the first exchange-traded Bitcoin future in Europe by the CFTC [making it accessible to the US market] represents another significant step towards increasing the accessibility of cryptocurrencies among institutional investors.”

Since the launch, more than ten members have traded hundreds of contracts, with others set to join. According to the business, at least five market makers provided liquidity during global trading hours.