Trading in Bitcoin Futures and Options Will Begin on the London Stock Exchange

This year, the London Stock Exchange Group (LSE) will provide services involving Bitcoin index futures and options.

This year, the London Stock Exchange Group (LSE) will provide Bitcoin index futures and options derivatives trading and clearing services. Users now have the option to invest in Bitcoin thanks to a collaboration between the LSE and a digital trading platform.

According to Reuters, on April 13, the London Stock Exchange (LSE) and Global Futures and Options (GFO-X) have teamed to introduce the first regulated Bitcoin futures and options trading in the UK.

As it gets ready to become a global powerhouse for cryptocurrency, Great Britain has adopted cryptocurrencies with caution. Also, it started a public consultation on potential regulations for crypto assets, which are still unregulated at the moment.

Digital asset derivatives can be traded by international institutional investors through GFO-X. A clearing service for cash-settled, dollar-denominated digital assets traded on GFO-X will be made available by the London Stock Exchange Group’s LCH SA clearing arm, situated in Paris.

It’s anticipated that Bitcoin futures and options trading will begin in Q4 2023. French regulatory bodies have not yet approved the clearing services.

“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.” stated by Arnab Sen, the CEO and co-founder of GFO-X.

In light of recent events like the U.S. banking crisis, the London Stock Exchange concurred that Bitcoin index futures and options are developing into a rising asset class. In addition, institutional investors in the UK have shown a growing interest in cryptocurrencies.

Nasdaq to Provide Crypto Custody Services
Exchange operator Nasdaq stated in March that Nasdaq Digital Assets, a division dedicated to digital assets, would be introducing its crypto custody services by the end of the second quarter.

Due to a rise in investor demand, traditional financial service companies are slowly implementing cryptocurrency trading and other services. The market has been influenced in some ways by large banks like J.P. Morgan, BlackRock, Morgan Stanley, and Goldman Sachs.