CME overtakes OKEx as largest Bitcoin futures market
The CME Group has become the world's largest Bitcoin (BTC) futures market after a surge in open interest last month, industry data shows.
In a Friday tweet, Arcane Research announced that CME has overtaken OKEx as the world's largest Bitcoin futures market. Citing data from Skew, a market research firm, Arcane said open interest in CME's bitcoin futures contract has reached $ 1.16 billion. OKEx now recorded $ 1.07 billion.
"Institutional investors are here," said Arcane.
CME's bitcoin futures market has more than doubled in the last month. More and more traders are looking to get exposure to the flagship cryptocurrency as it hit near all-time highs. Trading futures contracts can sometimes result in high volatility, especially as expiration approaches, as contract holders adjust their positions before that date.
The November futures contract BTCX20 expires on Friday.
The Binance and Huobi cryptocurrency exchanges have also emerged as major futures players. Based on open interest, they are the third and fourth largest BTC futures platform.
Bybit, also on Arcane's list, announced earlier this week that it would soon be launching a quarterly Bitcoin futures contract.
The futures market is an important factor in Bitcoin's adoption as traditional investors join the mix. While the 2017 bull market was primarily driven by retailers, the current uptrend has been fueled by deeper institutional pockets.
According to investment manager Wilshire Phoenix, CME in particular is becoming increasingly important for Bitcoin pricing.
The importance of CME "is shown not only by trading volume and open interest," said Wilshire, "but also by its impact on spot pricing.
Bitcoin price is currently consolidating in the $ 16,500 range after a heavy sell-off on Thanksgiving Day.