The Chicago Mercantile Exchange (CME) managed to position itself as the second largest derivatives market in the crypto market, but what does this mean for Bitcoin?
CME Group manages to scale in the crypto derivatives market
A few days ago the CME had managed to overtake BitMEX in the open interest ranking of Bitcoin (BTC) futures. Yesterday, it managed to outperform Binance as well; getting second place.
What has been working for CME? Well, two key elements: The PayPal news and, of course, the BitMEX declaration.
Recall that the Bitcoin Mercantile Exchange (BitMEX) open interest in Bitcoin futures has deteriorated after the crypto exchange was accused of illegally operating in the United States.
According to Skew data, CME Group’s open interest surge began on October 10 and has continued its ascent ever since.
Data from Arcane Research revealed on Twitter that CME’s Bitcoin futures market is currently the second largest with open interest of nearly $ 800 million.
The above figure is more than 15.9% of the aggregate open interest among the 12 Bitcoin derivatives crypto exchanges.
It is worth emphasizing that this means that more Bitcoin futures are being traded on the CME BTC market than on popular crypto exchanges such as binance, BitMEX, Huobi and Bybit.
Are Institutional Investors the Answer for Bitcoin?
Let us bear in mind that the demand for Bitcoin in the different markets has increased considerably; especially by other than the usual retailers.
We have seen it through different metrics; from the decrease in the amount of Bitcoin in crypto exchanges to the increase in the number of wallets with more than 100 BTC. But is it really so?
Many experts in the crypto community point to that direction; some have even defined it as institutional FOMO at its best, as was the case with Weiss Ratings.
Likewise, it is relevant to comment that, according to data from BitcoinTreasuries.org, 4% of the circulating supply of Bitcoin. Among the list of holders we have familiar names like MicroStrategy, Square and Grayscale.
Precisely the increase in open interest towards the CME Group bitcoin futures contracts coincides with the crypto price increase of 14.21% during the last week.