Cryptocurrency broker Genesis Global Capital has announced the implementation of a unique agreement that will pave the way for new institutional cryptocurrency products.
Genesis has completed its first over-the-counter (OTC) blockchain transaction at the close of the Index (BTIC) using Bitcoin futures contracts issued on the Chicago Mercantile Exchange (CME). According to an announcement on September 26, the agreement was signed in cooperation with derivatives producer Akuna Capital.
This is the first time that BTIC has been used for cryptocurrencies, as it is more popular in the stock markets. This type of trading allows investors to buy and sell futures contracts at prices based on the end of the index at the end of the day.
Tim McCourt, head of global equity index and alternative investment products for CME Group, said the product was the next step toward expanding access to CME Bitcoin derivatives and Ethereum futures since the launch of Ethereum contracts in February. He explained the benefits of this new trading tool and explained:
“BTIC enables market participants to trade more efficiently on a fundamental basis, while providing a regulated platform for real-time pricing and increased trading accuracy for institutional participants looking to improve the futures and spot markets.”
Genesis provides CME Group with liquidity for its BTC and ETH futures and options products.
On the topic: Big Bitcoin Investors Switch to Ether Futures: JPMorgan
In May, the Chicago Mercantile Exchange launched a small bitcoin futures contract, which is contracts worth 0.1 BTC. The proposal is designed to give institutional traders the opportunity to hedge cryptocurrency risks.
By the end of June, the product had crossed 1 million contracts sold, indicating strong demand for smaller positions in cryptocurrency among institutional investors who are still struggling. This latest product is another example of the diversification of opportunities for wealthy investors to gain access to the cryptocurrency markets.