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Bitcoin futures to be offered by the London Stock Exchange Group

Published 14/04/2023, 09:02
Updated 14/04/2023, 09:11
© Reuters Bitcoin futures to be offered by the London Stock Exchange Group

© Reuters Bitcoin futures to be offered by the London Stock Exchange Group

Proactive Investors - The London Stock Exchange Group (LON:LSEG) plc and digital asset derivates platform Global Futures and Options (GFO-X) are teaming up to bring regulated bitcoin futures and options products to the British markets for the first time.

Paris-based clearing house LCH SA, which is owned by the London Stock Exchange Group, will facilitate the transactions via a new, segregated service called DigitalAssetClear.

Bitcoin futures and options are expected to go live in the fourth quarter of 2023, pending regulatory approvals.

"GFO-X is taking the first steps to extracting efficiencies from new technologies within a traditional market structure, with the goal over time of delivering 24/7 trading to global regulated digital asset markets," GFO-X said in a statement.

Bitcoin futures are already available through firms such as CME Group (NASDAQ:CME), while Deribit currently corners the options market, but LSE Group’s partnership with GFO-X is the first move by a mainstream clearing house.

"Recent market events in the trading of digital assets have highlighted the need for a safe, regulated venue where large financial institutions can trade at scale, while keeping their clients’ assets protected," said Arnab Sen, chief executive and co-founder of GFO-X.

Frank Soussan, business head at LCH, said: “We look forward to working with GFO-X and market participants alike to build a liquid, regulated marketplace for these products, and contributing to its safe growth and development."

Conservative party head Rishi Sunak has long touted Britain’s potential as a global hub for digital asset technology, having launched numerous consultations into the poorly regulated sector in recent years, though has since dragged his feet on implementing a clear strategy.

However, crypto adoption has yet to go mainstream, with a YouGov (LON:YOU) poll suggesting only 10% of adult Brit has personally bought cryptocurrency in the past (though this is a 100% increase over two years).

The recent announcement by the London Stock Exchange Group comes amid a tear on bitcoin's price, having rallied over 80% year to date, marking bitcoin as one of the best-performing asset classes of 2023.

Read more on Proactive Investors UK

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Latest comments

About time. Hopefully will be able to access this market easily.
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