Eurex is to launch options on FTSE Bitcoin index futures in USD and EUR on 23 October 2023 following the launch of Bitcoin index futures in April 2023.
The exchange said the volatility of the cryptocurrency market underscores the need for a “credible, safe and regulated” market that supports the trading and risk management of digital assets.
Randolf Roth, member of the executive board of Eurex Frankfurt AG, said: “Investors need robust trading and clearing safeguards when engaging in the crypto market. Eurex is a renowned regulated exchange, with a trusted platform and appropriate safeguards offering multi-asset class trading. With our extended crypto derivatives suite, we offer a trusted path to crypto.”
New contracts are listed as options on futures in EUR and USD, with the respective Bitcoin index future as underlying, equivalent to 1 Bitcoin. Both options and futures expire at the same time (17:00 CET) on the last Friday of the month. Alongside monthly and quarterly maturities, weekly expiring contracts will also be available to trade. FTSE Bitcoin Index (USD & EUR) is the reference rate for the final settlement for the underlying futures contracts. It is determined as the volume time weighted average of the FTSE DAR Digital Asset Price over the 15-minute period before the fixing time. Liquidity will be supported by orderbook and over-the-counter liquidity providers.
Since the introduction of Bitcoin index futures, more than 50,000 contracts and US$1.3 billion notional were traded. Bitcoin index options will enable investors to hedge their Bitcoin exposure and deploy new trading strategies. Additionally, options provide investors access to the Bitcoin volatility risk premium in a regulated environment with institutional grade trading and clearing safeguards.
© Markets Media Europe 2023
