German Derivatives Exchange Eurex Could Soon Launch Futures Tied to Crypto Assets

Germany-based derivatives exchange Eurex is likely to announce futures linked to digital assets, fintech publication The Block reports. The futures contracts will reportedly be tied to Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).

The Block cites sources close to the exchange for the news. The market has recently seen a slew of futures contracts tied to digital assets, including Chicago-based CMOE and CBE, which launched their futures in December 2017. The Block 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.

Eurex, 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. At the time, a spokesperson for the marketplace organizer 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

Investment vehicles aimed at institutional investors have been on the rise in recent times, and some investors consider the current bear market to be a good time to enter the market.

Institutional investment has been seen as a key factor in the growth of the market. Several signs point to increased institutional investment this year, including the launch of Bakkt and its futures contracts, and, of course, 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.