The Bourse de Montréal Inc. (MX) will launch Bitcoin index futures in the new year.
The derivatives exchange announced that its regulatory division and policy committee approved rule changes to add trading in futures tied to the CoinDesk Bitcoin Price Index, which will take effect after the close on Jan. 15, 2024.
The index, which was launched in 2014, is based on real-time prices from multiple exchanges to provide a representative spot price for Bitcoin. The exchanges used for pricing are weighted “proportional to their trailing 24-hour liquidity with adjustments for price variance and inactivity,” according to its methodology.
The MX said it’s launching crypto futures to meet growing investor demand for digital assets, and to enable hedging of exposures to spot trading in Bitcoin.
Earlier this year, Alpha Exchange Inc. initiated a consultation on the idea of allowing spot trading in Bitcoin and Ethereum, though it hasn’t indicated whether or not it’s going ahead with that plan.
The MX’s new cash-settled futures contract will trade and settle in U.S. dollars, and will be cleared by the Canadian Derivatives Clearing Corp.