Bitcoin financial derivatives have grown significantly in recent months. On Friday evening (EST), Arcane Research reported that the Chicago Mercantile Exchange (CME) surpassed OKEx as the largest Bitcoin futures provider.
The CME regulated derivatives market is doubling every month as inflows drive demand for bitcoin CME futures.
CME Group Over the Years
The Chicago Mercantile Exchange (CME Group) is the largest financial derivatives exchange globally and is traded across a variety of asset classes. Its first launched Bitcoin futures in December 2017, and the demand for crypto derivatives has increased sharply since then.
On October 14, 2020, investment manager Wilshire Phoenix published a study stating that CME Bitcoin Futures does more to open up prices than the associated spot market. Its Bitcoin futures are growing in importance, which is evident in trading volume and open interest and their effect on spot price formation said the investment manager’s study.
On October 24, 2020, the group ranked the second largest market for Bitcoin derivatives futures in terms of open interest. Two important events that helped CME futures improve are crypto support announcement from Paypal and legal issues related to Bitmex derivative exchange.
The latest figures show that after a short thanksgiving action, BTC continues to attract a lot of attention and stands at 88th place with the newest fear and greed ratings. It is only seven points behind its record.
Significance Of CME’s Bitcoin Bulls
This week, the group outperformed OKEx and was the largest Bitcoin futures provider at the time of publication. The exchange generated more than $ 1.16 billion from open positions on its Bitcoin future. It is only just above the OKEx exchange, which has a $ 1.07 billion genuine interest in Bitcoin’s future.
The open exchange rate measures the total number of outstanding futures contracts and provides an accurate picture of the asset’s popularity in the market. The figures mean it has seized OKEx as the largest consumer bitcoin futures platform.
Arcane believes this is a testament to a long-awaited institutional shift into large-scale and long-term Bitcoin investing. The CME BTCX20 November 2020 futures contract expires on November 27, and settlement must be made today, November 30. The expiration coincided with a significant sale that saw Bitcoin drop to $ 16,600 before rebounding to over $ 18,000 on November 29.
Other exchanges for Bitcoin derivatives that have also seen a noticeable spike in open interest rates are Binance, Huobi, and Bybit. Bybit and Bitmex share the same genuine interest, according to a recent tweet from Arcane Research.
The Bakkt Bitcoin derivatives exchange, which deals with Bitcoin’s physically regulated future, has barely appeared in comparison to its competitors.