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CME becomes major Bitcoin futures exchange

The Chicago Mercantile Exchange (CME) took the prime spot on the list of the largest trading networks for Bitcoin futures, suggesting a continuing growth in institutional participation.

The CME accounted for 19.09 percent of the global tally of $11 billion on Wednesday with an open interest of $2.1 billion-the highest among major exchanges tracked by Skew, a research firm for crypto derivatives.

With an open interest of $1.97 billion, OKEx was the second-biggest exchange, while Binance, the world’s largest crypto spot exchange by trade volume, ranked third with $1.82 billion. According to coindesk.com, open interest refers to the number of contracts with an offsetting position traded but not squared off.

The size of the futures market was very limited, looking back at the year. On January 7, 2020, global open interest stood at $3 billion, of which just 7%, or $224 million, was contributed by the CME. In addition to bitcoin’s price rally from $10,000 to record highs above $37,000, the CME has steadily increased ranks over the past 12 months and more so over the past three months.

The exchange is considered to be synonymous with institutional trading because, through an established and regulated exchange like the CME, it prefers to trade futures of any product.

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SourceCoinDesk

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