Small Exchange Lowers Barrier To Crypto Innovation With New Index Future

The Small Exchange announced the launch of a new product, the Small Cryptocurrency Stock Index (SCCX), which begins trading on Oct. 4, 2021.

What Happened: Launched last year, the Small Exchange was founded after CEO and President Donald Roberts, alongside Tom Sosnoff, founder and co-CEO of tastytrade, reflected on their experiences building thinkorswim, a brokerage acquired by TD Ameritrade in 2009 for $606 million.

Given their view that the futures market missed the boat on the retail world and general public, the Small Exchange was born offering products with standardized tick sizes, expiration cycles, and reduced notional sizes.

The latest product to launch is the Small Cryptocurrency Stock Index (SCCX) contract, a cash-settled future whose underlying measures the performance of 17 crypto stocks that includes Coinbase Global Inc COIN, RIOT Blockchain Inc RIOT, and the Grayscale Bitcoin Trust GBTC.

“At the Small Exchange, we want to continue to add products that are accessible to the retail trader,” Small Exchange President and CEO Donald Roberts told Benzinga. “The SCCX provides an opportunity to participate in the digital asset market as this product offers traders and investors a hedge or even long-term passive investment by providing exposure to BTC and ETH due to high correlation of SCCX to these products.”

Why It Matters: With direct exposure to small, standard, and simple futures contracts, the Small Exchange believes it is unlocking barriers to crypto innovation.

“This index will appeal to traders who want exposure to this market without the cumbersome trading of the crypto-cash markets by providing the ability to go long or short depending on sentiment with ease on a registered marketplace,” Roberts added. “Plus, the product affords access to this market without the exorbitant fees the equities markets have for ETF or OTC Trust products or even crypto markets for that matter.”