1.1 k

TMX Group Unveils Plans to Launch Its First Crypto Futures Product

TMX Group, Canada’s largest stock market operator, is gearing up to roll out its first crypto futures product. A report unveiled this news on February 8, citing the company’s CEO, John McKenzie. Per McKenzie, TMX is in response to institutional investors’ desires to mitigate the risks of trading in crypto.

Reportedly, TMX seeks to drop its new product before the end of the year. The product will go live on the Montreal Exchange. While this will be the firm’s first crypto futures product, it is worth noting TMX has listed 17 crypto-based ETFs on the Toronto Stock Exchange by December 31, 2021.

Explaining why institutional investors are demanding a crypto futures product, McKenzie,

More institutional investors and dealers are… holding more crypto assets within their portfolios or for their clients or in ETFs. In crypto there’s a lot of price volatility so (they’re looking at) how they manage that exposure.

He added that TMX would not model its future product on other offerings. However, the firm expects that existing future regulation would cover its offering as well. McKenzie further noted that TMX does not have any current plans to avail the product to retail traders.

Investor Interest in Cryptos Continues Swelling

TMX’s plans to issue a crypto futures product as digital asset interest soars among institutional investors. For instance, KPMG, a leading Canadian accounting firm, announced it had added Bitcoin (BTC) and Ether (ETH) to its corporate treasury.

Detailing why KMPG decided to embrace crypto, its Managing Partner, Benjie Thomas, said the asset class is nearing maturity. Thomas elaborated that hedge funds, family offices, large insurers, and pension funds are increasingly seeking exposure in the industry.

He went on to say,

This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix.

Bitcoin live price
price change

Meanwhile, the crypto market is staging a recovery. At the time of writing, BTC gaining is up 2% over the past 24 hours to change hands at $44,256.89. The altcoin market is also green, with Ripple (XRP) being the largest gainer in the top-10 list of leading cryptos.

Stay up to date with our latest articles