Genesis is testing a trading method that will allow institutional investors to trade Bitcoin futures contracts based on their closing price at the end of the day

The cryptocurrency brokerage company Genesis Global Capital announced the completion of a unique transaction that will pave the way for new institutional crypto futures products.

Genesis executed the first over-the-counter (OTC) block trade of a Basis Trade at Index Close (BTIC) transaction using Bitcoin futures contracts issued by the Chicago Mercantile Exchange (CME). The transaction was carried out in cooperation with the derivatives market maker Akuna Capital, according to a notice dated Jan.

It is the first time a BTIC has been used on cryptocurrencies as it is more common in the stock markets. This type of trading enables investors to buy and sell futures contracts, the price of which is based on the closing price of the index at the end of the day.

Genesis is testing a trading method that will allow institutional investors to trade Bitcoin futures contracts based on their closing price at the end of the day
Genesis is testing a trading method that will allow institutional investors to trade Bitcoin futures contracts based on their closing price at the end of the day

Tim McCourt, Global Head of Equity Indices and Alternative Investment Products, CME Group, said: The product was the next step in providing greater exposure to CME’s Bitcoin derivatives and Ethereum futures, taking into account the Ether contracts launched in February. He explained the advantages of this new negotiating tool:

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Genesis provides the CME Group with liquidity for its BTC and ETH futures and options products.

In May, CME launched Bitcoin microfutures, which are 0.1 BTC contracts. The offering was developed to enable institutional traders to hedge their risks with crypto assets.

By the end of June, the product had exceeded one million contracts traded, suggesting that there is great demand for smaller positions in cryptocurrencies from institutional investors still under scrutiny. This latest product is another example of diversification options for high net worth investors to get into the cryptocurrency markets.

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