Cryptocurrency Futures Product Is TMX Group’s New Offering

John McKenzie confirmed that the TMX Group Limited would launch its first-ever cryptocurrency futures product soon. This chief executive officer of Canada’s largest stock market operator said that their company would release this new offering on the Montreal Exchange this 2022.

We find this cryptocurrency-related report interesting and significant for our followers to know. We believe the upcoming cryptocurrency futures product of the TMX Group Limited will become well-received, especially among institutional investors seeking relevant investment assets.

Based on the report posted online by international news outlet Reuters, McKenzie discussed the new cryptocurrency futures product to the international press last Tuesday, February 8. 

He said this offering is the TMX Group Limited’s response to institutional investors’ desire to offset the risks of trading in cryptocurrencies, being a relatively new investment asset class.

After TMX Group Limited posted fourth-quarter earnings results last Monday, February 7, the company’s chief executive officer affirmed that there is a broader surge in interest in cryptocurrencies from firms and investors today. 

With the forthcoming unveiling of his organization’s cryptocurrency futures product, McKenzie cited in an interview that more dealers and institutional investors are holding more crypto-assets in exchange-traded funds or ETFs, for their clients, or within their investment portfolios.

Moreover, the head of the Toronto stock and Montreal derivatives exchanges’ operator pointed out that there is considerable trading price volatility in cryptocurrencies. Hence, McKenzie mentioned that institutional investors are looking at how they manage that exposure.

He relayed that TMX Group Limited is not modeling the cryptocurrency futures product on any other offering, though existing regulations around futures products should cover it. McKenzie added that his company does not have present plans to make this upcoming product available to retail investors.

Canada’s TMX Group Limited listed the world’s first Bitcoin ETF nearly one year ago. Additionally, it had 17 cryptocurrency ETFs listed on the Toronto Stock Exchange as of December 31, 2021.

We gathered that investors had fled risk investment assets in the middle of interest rate increase expectations by central banks. In recent weeks, they have recovered some of those losses.

We also learned that virtual currency assets had posted steep declines in recent months. We think the first cryptocurrency futures product that Canada’s TMX Group Limited will launch for institutional investors this year will aid this firm and the investment asset class to gain more supporters and earn the trust of former investors again. 

After all, we view virtual currencies as a maturing investment asset class, and we agree that investors, retail and institutional alike, are increasingly gaining exposure to them nowadays. Therefore, we think Canada’s TMX Group Limited and the institutional investors will both benefit from the new cryptocurrency futures product.