On April 13, 2023, the LCH division of the London Stock Exchange, a group of clearing houses serving major international exchanges and the broader over-the-counter (OTC) market, announced plans to offer clearing of bit Announced plans to offer clearing for bitcoin index futures and options contracts, Frank Soussan, business lead for LCH Digital Asset Clear, said in the announcement, “Bitcoin index futures and options are the fastest growing asset class in the .”
LCH SA’s clearing of bitcoin futures and options contracts reflects growing institutional interest
Astatementfrom LCH SA, the clearing house arm of the London Stock Exchange (LSE), says it will clear bitcoin index futures and options contracts. Subject to regulatory approval, the contracts will begin withand will be part of GFO-Xand a newly established segregated clearing service called LCH Digital Asset Clear.
The bitcoin contracts developed by GFO-X and approved by the UK’s Financial Conduct Authority (FCA) will be cash settled through LCH Digital Asset Clear and the GFO-X/Coin Metrics Bitcoin Reference Rate (GCBRR) index The GFO-X/Coin Metrics Bitcoin Reference Rate (GCBRR) index will be used. LCH SA, the world’s largest derivatives clearinghouse, will be clearing bitcoin futures and options, further increasing the company’s market presence.
Frank Soussan, head of LCH’s Digital Asset Clearing business, said in a statement that “Bitcoin index futures and options are a rapidly growing asset class and are of increasing interest to institutional investors seeking access within a familiar regulatory environment.” It states. He added, “Offering central clearing of these cash-settled dollar-denominated crypto derivative contracts at GFO-X is an important development for the market.” He added that.
LCH’s entry into bitcoin-related products occurs asBTChas risen 80% since the end of 2022. Additionally, on April 7, on-chain analytics provider Glassnoderevealed that “for the first time, the amount of open interest in bitcoin options contracts (10.3B) exceeded the amount of futures contracts held (10.0B)”. Futures OI has remained relatively flat in 2023. This is the result of significant buying of call options as investors began to speculate on an increase in the (bitcoin) price,” explained Glasnode.
How do you think LCH SA’s entry into clearing bitcoin derivatives will affect institutional and mainstream acceptance of cryptocurrencies? Share your thoughts on this topic in the comments section below.
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