CME Rises to Second Spot in Bitcoin Futures Market Amid Record Open Interest
Summary:
The Chicago Mercantile Exchange (CME), a regulated Bitcoin Futures exchange, has escalated to the second position among BTC futures exchanges, only behind Binance, with a notional open interest (OI) hitting $3.58 billion. This has enabled it to leapfrog Bybit and OKX, with an OI of $2.6 billion and $1.78 billion respectively. The increase in open interest mirrors a bullish market sentiment, with traders showing growing fascination in the Bitcoin futures market. This advancement has propelled CME to secure a quarter of the market share in Bitcoin futures. The rise in institutional interest, as shown by the majority of investment through standard futures contracts, comes as Bitcoin recorded a significant surge in October, reaching a high exceeding $35,000.
The Bitcoin Futures exchange of the Chicago Mercantile Exchange (CME), a regulated platform, has now placed itself just behind Binance in terms of notional open interest (OI), climbing to the second spot among BTC futures exchanges. On October 30th, CME reached an OI of $3.58 billion, causing it to advance two places compared to the previous week. With OIs of $2.6 billion and $1.78 billion, CME surpasses Bybit and OKX. Only a few million behind Binance, which holds an OI of $3.9 billion.
CME's standard Bitcoin futures contract is priced at five BTC, and the micro contract is equivalent to one-tenth of a Bitcoin. The key focus for offshore exchanges is perpetual futures, having no expiry date and utilizing the funding rate system to keep price parity with the market price, distinct from typical futures contracts.
Bitcoin open interest pertains to the aggregate number of Bitcoin futures or options contracts currently available in the market. It indicates how much money is committed to Bitcoin derivatives at any specific time. An increased influx of capital corresponds to a rise in open interest and vice versa. Thus, a surge in open interest demonstrates a bullish market sentiment, and a drop signifies a strengthening bearish market sentiment.
The surge in CME's OI not only facilitated its rise to the second spot among crypto futures exchanges, but also witnessed its cash-settled futures contracts surpass a volume of 100,000 BTC. The growing fascination of traders in the Bitcoin futures market has pushed CME to capture a quarter of the Bitcoin futures market share.
The vast bulk of investment into CME futures was through standard futures contracts, demonstrating impressive institutional interest. This came as Bitcoin saw a considerable double-digit increase in October, enabling it to hit an over one-year high, exceeding $35,000.
Published At
10/30/2023 12:32:51 PM
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