German Derivatives Exchange To Might Announce Futures Linked to Crypto Assets

As per reports published by fintech publications The Block, Eurex, a Germany-based derivatives exchange most likely gearing up to announce futures linked to digital assets. The reports say that the futures contracts will be tied to Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). The Block cites news from sources close to the exchange. The report reads:

Several people familiar with Eurex’s plans say the firm will announce its plans to launch futures tied to bitcoin, ether, and XRP imminently. In recent weeks, the exchange has been meeting with market-making firms about the products.

The crypto world has seen a recent onslaught of futures contracts tied to digital assets, including Chicago-based CMOE and CBE, which launched their futures in December 2017.

Eurex, which is owned by the Deutsche Börse, is Europe’s largest futures and options market and offers German and Swiss debt instruments, as well as stocks and stock indexes.

CNBC reported in December 2017 that the Deutsche Börse was looking to provide digital asset-based futures contracts. A spokesperson for the marketplace organizer, in December 2017, had pointed to the “still evolving” nature of cryptoassets as being the challenge,

We are thinking about futures, with which private investors and institutional investors can protect existing investments in bitcoin or set for falling prices of the cyber currency… We reflect both the advantages of cryptocurrency derivatives as well as potential issues that need to be addressed… As a fully regulated exchange, we need to address all of the above and more, before we can launch products.

Institutional investment has been seen as a key factor in the growth of the market. Several signs point to increased institutional investment this year, following the launch of Bakkt and its futures contracts. Both PwC and Morgan Stanley have predicted that institutional funds will pour into the market and that digital assets will firmly establish itself as a new asset class.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.