TMX Group, the largest Canadian exchange, said Tuesday its derivatives trading platform will soon introduce bitcoin (BTC) futures contracts.

"Montréal Exchange (MX) is launching the Bitcoin Price Index Futures to meet rising market demand for digital cryptocurrency asset classes," an announcement on the firm's website said. "Despite growing interest, investors face limitations when evaluating vehicles to manage their exposure to bitcoin price movements."

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The futures will be cash settled in U.S. dollars, meaning that dollars change hands at settlement instead of the underlying instrument (bitcoin, in this case). The futures settlement value will be determined by the CoinDesk Bitcoin Price Index (XBX), crafted by CoinDesk Indices, a subsidiary of CoinDesk.

The development comes as traditional financial firms continue expanding their digital asset services. The Chicago Mercantile Exchange (CME), already a key venue in the U.S. to trade BTC futures, earlier this year added to its lineup with ether-to-bitcoin ratio futures.

Edited by Stephen Alpher.

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Canadian Exchange TMX Soon to Start Bitcoin Futures Trading

The futures contracts will trade on the Montreal Exchange and will be cash-settled and denominated in U.S. dollars, the exchange said.

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