In a historic development for the Canadian digital asset market, TMX Group, the country’s largest exchange, is set to launch Bitcoin (BTC) futures contracts on its derivatives trading platform.
According to reports, the Montreal Stock Exchange (MX)’s move to launch Bitcoin Price Index futures comes in response to growing market demand for this new asset class.
Trade bitcoin futures in canada
the advertisement From the popular exchange he begins by saying,
“The Montreal Stock Exchange (MX) launches Bitcoin Price Index Futures to meet growing market demand for cryptocurrency asset classes… Despite growing interest, investors face limitations when evaluating vehicles to manage their exposure to Bitcoin price movements.”
The report notes that many investors are often limited when looking to join the cryptocurrency space, especially when managing their exposure to Bitcoin price fluctuations. As such, the network notes that MX’s new Bitcoin Price Index futures will enable investors to “hedge spot trading exposure to Bitcoin” while exploring other opportunities in the evolving cryptocurrency space.
Furthermore, MX noted that this product will provide investors with a gateway to portfolio diversification, real-time pricing, liquidity and active trading. The settlement value of newly created contracts will be determined by CoinDesk’s product, the CoinDesk Bitcoin (XBX) Price Index.
XBX will combine a couple of metrics and factors, including the aforementioned real-time prices from different exchanges, to determine the most accurate spot price for BTC.
According to a network statement, the futures contracts will be traded on the Montreal Stock Exchange and will be cash-settled in US dollars, with liquidation taking place at the Canadian Derivatives Clearing Corporation (CDCC).
TMX exchange and cryptocurrency futures
TMX Group began its journey into cryptocurrencies several years ago. I listed my first Bitcoin ETF in 2021 when the cryptocurrency asset was just being prepared.
Later, in 2022, rumors spread that the network was considering launching a cryptocurrency futures product to attract institutional investors.
During those initial stages, John MacKenzie noted that institutional traders who held large assets in their portfolios were looking for ways to manage their exposure to price fluctuations. Notably, the network already included 17 cryptocurrency-focused ETFs at the time.
Recently, there has been speculation that the platform is planning to offer a spot trading platform for cryptocurrencies as early as 2024.
As the exchange plans to launch its product, it’s worth noting that the Canadian ETF market has been booming for years.
This comes even as immediate neighbors, the United States of America, and its regulatory watchdogs continue to delay approval of cryptocurrency-focused spot ETFs.
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