Genesis Global Capital Conducted the First OTC Block Trade in Bitcoin Futures

The institutional-investor-focused Genesis Global Capital and market maker on the futures market Akuna Capital carried out the first OTC trade of a large block of CME Bitcoin futures on the BTIC basis.

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BTIC (Basis Trade at Index Close) entails an agreement between a buyer and seller of futures contracts on the spread or basis added to the day\’s index closing price to determine the futures price. The instrument is used for derivatives on stock indices.

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The basis is agreed prior to the trade and depends on the overall financing rate, dividends [in the case of equities] and the time remaining until contract expiry. The value can be either negative or positive.

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\”We are introducing BTIC for our cryptocurrency futures for the first time. Such trades provide real-time price discovery on a regulated market for institutional participants who want to optimize positions between futures and the spot markets\”, said Tim McCourt, CME Group\’s Head of Equity Index and Alternative Investment Products.

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Genesis said that BTIC addresses the hedging needs of counterparties that use the Bitcoin Reference Rate as a benchmark.

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Earlier in May, CME Group launched trading micro Bitcoin futures.

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