Genesis Global Capital, a cryptocurrency trading firm, has completed a one-of-a-kind trade that will pave the way for new institutional crypto futures products.

Genesis announced the execution of the first OTC trade of a BTIC (Basis Trade at Index Close) transaction on CME Bitcoin futures. Akuna Capital, a premier options market maker specializing in derivatives market-making and sophisticated markets, executed this trade, according to a news statement issued on September 26.

BTICs have never been used in the cryptocurrency market previously. They are more commonly employed in the stock market. Institutional investors can now trade Bitcoin futures contracts depending on their closing price at the end of the day.

The Global Head of Equity Index and Alternative Investment Products at CME Group, TIM McCOURT, stated that the new product is the next step for CME to offer broader exposure to products from their Bitcoin derivatives and Ethereum futures. 

He further adds, “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.”

According to the Genesis Q2 2021 Market Observations Report, the Genesis counterparty base rose by 15% in the second quarter of 2021, with the noticeable inclusion of major institutional investors eager to enter the crypto derivatives market for the first time. 

Genesis is a full-service digital currency prime brokerage that offers qualified individuals and global institutional investors a single point of access. It traded $29 billion in spot volume, up 487 percent year over year, and $8.5 billion in derivatives volume. The firm provides the full array of digital asset portfolio management services that global investors require.

Pavan A

CBW - External Analyst

INDIA