[ad_1]
CME Group has become the largest Bitcoin (BTC) futures market in the world after a surge in open interest over the past month, industry data shows.
In a tweet on Friday, Arcane Research announced that CME overtook OKEx as the largest Bitcoin futures market in the world. Citing data from Skew, a market intelligence firm, Arcane said open interest in CME’s Bitcoin futures contract reached $ 1.16 billion. OKEx, meanwhile, posted $ 1.07 billion.
“Institutional investors are here,” Arcane said.
CME’s Bitcoin futures market has more than doubled in the past month, with more traders seeking exposure to the flagship cryptocurrency as it has climbed to near all-time highs. Futures trading can sometimes invoke high volatility, especially as the deadline approaches, as contract holders change their positions before that date.
Its November futures contract, BTCX20, expires on Friday.
Cryptocurrency exchanges Binance and Huobi have also emerged as the major players in futures. Based on open interest, they are the third and fourth largest BTC futures platform respectively.
Bybit, who also appeared on Arcane’s roster, announced earlier this week that it will soon launch a quarterly Bitcoin futures contract.
The futures market is an important benchmark for Bitcoin adoption because it means traditional investors are getting into the mix. While the 2017 bull market was largely driven by retail traders, the current bullish trend was fueled by deeper institutional pockets.
CME, in particular, is becoming vital for Bitcoin’s price discovery, according to investment manager Wilshire Phoenix.
The significance of CME is “not only demonstrated through trading volume and open interest,” Wilshire said, “but also by its influence on spot price formation.
Bitcoin’s price is currently consolidating in the $ 16,500 range following a heavy Thanksgiving sell-off.
[ad_2]Source link
