Genesis executes the first OTC Trade of a new Bitcoin Futures product
The abovementioned firm announced the completion of a first-of-a-kind trade that will pave the way for new institutional crypto futures products. The official press release read as follows.
“Genesis Global Capital…today announced that it has executed the first-ever OTC block trade of a BTIC (Basis Trade at Index Close) transaction on CME Bitcoin futures with Akuna Capital, a leading options market maker specializing in derivatives market-making and sophisticated modelling.”
The report further noted, “commonly used equities product, BTIC has now been made available for cryptocurrencies for the first time.” This form of trading allows investors to buy and sell futures contracts with prices based on the end-of-day close of the index.
Joshua Lim, Head of Derivatives at Genesis, said,
“BTIC fills a hedging need for our counterparties who are benchmarked to the Bitcoin Reference Rate and we are proud to be the first firm to trade this pioneering product.”
Meanwhile, CME Group Global Head of Equity Index and Alternative Investment Products, Tim McCourt opined,
“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.”
Genesis provides liquidity to CME Group for its BTC and ETH futures and options products. In addition to this, the Chicago Mercantile Exchange (CME) launched micro Bitcoin futures; contracts worth 0.1 BTC. It allowed institutional traders to hedge their risks to crypto assets. Although here’s the interesting part. As of June 24, CME’s Micro Bitcoin futures contract surpassed 1 million contracts traded since launching on May 3. It signified that there is a high demand for smaller positions in crypto among institutional investors.