TMX Group, Canada’s largest exchange, is responding to market demand by launching Bitcoin Price Index Futures on the Montreal Exchange. This move allows investors to hedge exposure to Bitcoin while exploring cryptocurrency opportunities.
In a significant development for Canada’s digital assets market, TMX Group, the country’s largest exchange, is gearing up to introduce Bitcoin (BTC) futures contracts on its derivatives trading platform. The Montreal Exchange (MX) is spearheading this initiative in response to the rising demand for cryptocurrency asset classes.
Investors seeking to navigate the cryptocurrency space often face limitations when managing Bitcoin price fluctuations. MX’s new Bitcoin Price Index Futures aim to address this issue by enabling investors to hedge their exposure to Bitcoin spot trading. Additionally, this product offers a gateway for portfolio diversification, real-time pricing, liquidity, and active trading. The settlement value of these contracts will be determined using the CoinDesk Bitcoin Price Index (XBX), which combines various metrics to ascertain BTC’s most accurate spot price.
These futures contracts will trade on the Montreal Exchange and will be cash-settled in U.S. dollars, with clearance handled by the Canadian Derivatives Clearing Corporation (CDCC).