Cryptocurrency brokerage firm Genesis Global Capital has announced the completion of a first-of-its-kind trading that will pave the way for new institutional crypto futures products.
Genesis has performed Index Close (BTIC) transactions in over-the-counter (OTC) block trades for the first time using Bitcoin futures contracts issued by the Chicago Mercantile Exchange (CME). The trade was conducted in collaboration with Akuna Capital, a derivatives market maker, as announced on September 2.
This is the first time it has been used for a BTIC cryptocurrency because it is used more in the equity market. This type of trading allows investors to buy and sell futures contracts with prices based on the index closing at the end of the day.
Tim McCourt, CME Group’s Global Head of Equity Index and Alternative Investment Products, said the product was the next step in expanding CME’s Bitcoin derivatives and Etherium futures with the launch of the Ether deal in February. He elaborated on the advantages of this new trading vehicle, explaining:
“BTIC enables market participants to trade more efficiently while providing a regulated marketplace for real-time price discovery and provides improved trading clarity for institutional participants who want to optimize holding between futures and spot markets.”
Genesis CME Group provides liquidity for its BTC and ETH futures and options products.
Related: Big investors are moving from Bitcoin to Ether Futures: JPMorgan
In May, CME launched Micro Bitcoin Futures which is a 0.1 BTC price deal. The offer was designed to protect institutional traders from their risk in crypto assets.
By the end of June, the product had surpassed one million traded deals, indicating that there is a high demand for small positions in crypto among institutional investors who are still testing the water. This recent product is another example of diversifying the options of good heel investors for exposure gains in the crypto market.