Genesis Global Capital has made its first over-the-counter bitcoin futures package deal
Institutional investor-oriented service Genesis Global Capital and futures market maker Akuna Capital have executed the first over-the-counter transaction with a large package of CME-traded bitcoin futures on BTIC.
BTIC (Basis Trade at Index Close) involves an agreement between the buyer and seller of futures contracts on a spread or basis that is added to the current day's index closing price to determine the price of the futures. The instrument is used for stock index derivatives.
The basis is agreed prior to the transaction and depends on the total funding rate, dividends [in the case of shares] and the time remaining to maturity of the contract. The value can be either negative or positive.
"This is the first time we have offered BTIC for our cryptocurrency futures. Transactions like this provide real-time pricing in a regulated market for institutional participants looking to optimise positions between the futures and spot markets," commented Tim McCourt, CME Group head of equity indices and alternative investment products.
Genesis explained that BTIC meets the hedging needs of counterparties that target Bitcoin Reference Rate as a benchmark.
As a reminder, CME Group launched bitcoin microfutures trading on 3 May.