genesis

Genesis is experimenting with end-of-day pricing for institutional crypto futures products

Genesis Global Capital, a cryptocurrency brokerage firm, has announced the completion of a first-of-its-kind trade. That will pave the way for new institutional crypto futures products.

Genesis has completed the first-ever OTC block trade of a Basis Trade at Index Close (BTIC) transaction using Bitcoin futures contracts issued by the Chicago Mercantile Exchange (CME). According to a Sept. 26 announcement, the trade was made in conjunction with derivatives market maker Akuna Capital.

Because BTICs more commonly used in equities markets. This is the first time one has been used for cryptocurrencies. Investors can buy and sell futures contracts with prices based on the index’s end-of-day close in this type of trading.

The product, according to Tim McCourt, CME Group Global Head of Equity Index. And Alternative Investment Products, is the next step in providing greater exposure to CME’s Bitcoin derivatives. And Ethereum futures. Which launched in February. He went on to explain the benefits of this new trading vehicle, saying:

“BTIC enables market participants to more efficiently trade the basis while providing a regulated marketplace for real-time price discovery and enhanced trading precision for institutional participants who want to optimize holdings between the futures and spot markets.”

CME Group uses Genesis to provide liquidity for its BTC and ETH futures and options products.

The CME introduced micro Bitcoin futures in May, which are contracts worth 0.1 bitcoin. Moreover, the offering created to allow institutional traders to diversify their crypto-related risks.

Moreover, the product had over a million traded contracts by the end of June. Indicating that there is a high demand for smaller positions in crypto among institutional investors. Who is still testing the waters. This latest product is yet another example of how well-heeled investors can gain exposure to crypto markets by diversifying their options.

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