A German stock exchange operator will be reportedly considering the launch of its own bitcoin futures contracts.
Deutsche Boerse executives have been “thinking” about the introduction of futures contracts, German business magazine Wirtschaftswoche reported Wednesday.
“We are thinking about futures, with which private investors in addition to institutional investors can protect existing investments in bitcoin or set for falling prices of the cyber currency,” a spokesperson for Deutsche Borse told the publication.
This specific could make Germany the first European country to provide futures for the cryptocurrency.
A spokesperson for Deutsche Boerse told CNBC in which they could not confirm Wirtschaftswoche’s story, yet said the firm was looking into the asset class “as we always look into fresh asset classes.”
“We reflect both the advantages of cryptocurrency derivatives as well as potential issues in which need to be addressed,” the spokesperson said.
Such issues included the fact in which digital currency technology was “still evolving,” the fragility of bitcoin’s spot market, a lack of regulation in addition to cost volatility.
“As a fully regulated exchange, we need to address all of the above in addition to more, before we can launch products,” the spokesperson said.
The futures contracts could be traded via Deutsche Boerse’s Eurex derivatives exchange, Wirtschaftswoche said.
So far, U.S. exchange operator Cboe will be the only venue to offer such contracts. The CME will be lining up to introduce the derivatives, in addition to will be set to launch them on December 18.
Experts believe This specific development will be a major step toward bringing more institutional money into the cryptocurrency.