Responding to the concerns of institutional investors about trading risks in a new asset class, TMX Group, the major stock market operator in Canada, is set to launch its initial crypto futures product.
John McKenzie of TMX Group shared with Reuters that the company intends to introduce the product on the Montreal Exchange later in the year. McKenzie noted the increasing trend of institutional investors and dealers holding more crypto assets in their portfolios, for clients, or in ETFs. He mentioned that they are working on risk mitigation strategies due to the high volatility of cryptocurrencies.
Cointelegraph has reached out to TMX Group for further details on this development, and updates will be provided as more information becomes available.
Due to concerns about interest rate hikes by central banks, cryptocurrency assets have experienced significant declines in recent months as investors turned to safer investment options. However, in recent weeks, there has been some recovery, with Bitcoin (BTC) surpassing the $42K mark and Ether (ETH) price retracing to test $3,000 support levels.
TMX Group’s announcement comes at a time when cryptocurrencies are attracting growing interest from investors and firms. A notable example is MicroStrategy, a business intelligence software company, which has converted all its cash reserves into Bitcoin and even borrowed funds to make additional purchases.
Related: MicroStrategy CEO commits to holding $5B BTC reserves despite crypto market downturn
Recently, KPMG, one of the leading accounting firms in Canada, added Bitcoin and Ethereum to its corporate treasury, joining a growing list of large companies converting fiat assets into cryptocurrencies.
Tesla, the electric car manufacturer, reported holding nearly $2 billion in Bitcoin on its balance sheet by the end of 2021, according to official company disclosures on Monday. Data from Bitcoin Treasuries indicates that forty public companies now have BTC holdings.
