FalconX leverages BlackRock’s index provider for crypto derivatives

FalconX said its products will encompass swaps, options and non-deliverable forwards, intended to provide exposure settled against reference rates from CF Benchmarks

article-image

T. Schneider/Shutterstock, modified by Blockworks

share

Crypto prime brokerage FalconX has begun offering a suite of derivatives contracts based on the same index as Blackrock’s bitcoin ETF, in a bid to foster “trust among institutional investors.”

FalconX said its products encompass swaps, options and non-deliverable forwards, intended to provide exposure settled against reference rates provided by Financial Conduct Authority-regulated crypto index provider CF Benchmarks, according to a statement. 

The companies said they were responding to heightened demand for more transparent financial instruments within the digital assets sector by providing an assortment of derivatives contracts, based on consistent benchmarks.

“Derivatives benchmarked against resilient and regulated indices are the primary route institutions take to gain exposure to the crypto asset class,” Sui Chung, CEO of CF Benchmarks said.

Providing exposure to bitcoin (BTC), the contracts will be underpinned by the CME CF Bitcoin Reference Rate (BRR) for settlement while exposure to ether (ETH) will be settled against the CME CF Ether-Dollar Reference Rate. 

The BRR, like ether’s, aggregates the trade flow of major bitcoin spot exchanges during a specific calculation window into a once-a-day reference rate.

Established in 2016, BRR serves as the settling index for futures contracts put forth by both the CME Group and Crypto Facilities MTF. It’s also used to determine the value of investment products from leading financial firms like WisdomTree Europe.

The contracts offered by FalconX match up with the same set of indexes as those proposed for BlackRock’s prospective spot bitcoin ETF in the US, filed last month. 

The market is rife with speculation over whether the world’s largest asset manager can crack break through the regulatory red tape to get such a product approved in the US, as it has been in Canada and the European Union since 2021. If so, further institutional demand is expected to follow, providing an additional boost to regulated offerings at a time when larger players have begun asking for it.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

Publicly-traded, liquid securities are “low-hanging fruit” for tokenization before moving to private markets, executive says

article-image

The next step in Blockworks’ evolution into a data powerhouse increases customizability and autonomy over their high quality charts and data

by Westie /
article-image

Sponsored

With early interest from an initial cohort of brands including Metaplex, Story Protocol, and Pipe Network, Shelby offers decentralized, cloud-speed storage for streaming, AI, and real-time content

article-image

The $135 million raise shows that TradFi giants are serious about crypto adoption

article-image

The banking system still processes payments like it’s 1975. Crypto might have a fix.

article-image

Fiserv’s launch follows Senate passage of the GENIUS Act for stablecoin regulation.