Chicago Mercantile Exchange and Bitcoin Futures Market

Chicago Mercantile Exchange and Bitcoin Futures Market

Let us check the crypto market. The CME (Chicago Mercantile Exchange) is the second-biggest Bitcoin (BTC) futures exchange behind OKEx (in open interest). Rising institutional demand has buoyed it.

The Chicago Mercantile Exchange overtook Binance Futures to become the second biggest BTC  futures change by open interest. The data showed that the institutional volume rapidly gains a larger share of the cryptocurrency market.

Skew reported, on October ten, that the CME Bitcoin futures market’s open interest increased sharply by thousand and five hundred contracts. Within three days, since then, the price of Bitcoin surged nine percent to over thirty thousand dollars.

Thus, there is a growing open interest in CME’s futures contracts on Bitcoin. It will most likely have a positive effect on the price of Bitcoin. It is because a recent study found that CME BTC futures contribute more to price discovery than its related spot markets.

Two key players dominated the Bitcoin futures market for many years. They were OKEx and BitMEX. New-generation futures exchanges started to expand in the past year swiftly. It led Huobi, Binance Futures, and Bybit to compete versus the likes of BitMEX.

On December 17, 2017, the CME launched its Bitcoin futures contracts. Skew reports that within three years, it evolved into the second-largest Bitcoin futures exchange by open interest.


The term open interest means the sum of the value of all short and long futures contracts that are actively open. By measuring the amount of capital that is deployed onto the futures market, it is used to gauge the activity of the market.

Data came from Skew. Thus, it showed that CME now accounts for $790 million worth of Bitcoin short and long contracts. It falls merely nineteen million dollars behind OKEx. Therefore, it has been the dominant futures exchange throughout 2020.

There is a rapid increase in the open interest of the CME Bitcoin futures market. Thus, it reflects the growing institutional demand for some reason.

The overall volume of the Bitcoin futures market increased substantially, throughout the past three days. Thus, the open interest of CME increased higher than other retail-focused platforms. Those platforms also saw a massive spike in volume.

Major institution-focused markets, including the GBTC (Grayscale Bitcoin Trust), reported a massive upsurge in institutional flows. Cointelegraph said that GBTC saw a three hundred million dollars increase in net AUM (assets under management) in one day. Thus, it rose Bitcoin price primarily caused the assets under management to rise.

Also, the options market achieved a record-high daily volume.

That is news of the crypto market.

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