A study has shown that CME increases the price of Bitcoin, but rules out stable Bitcoin volumes


On October 14, investment firm Wilshire Phoenix released its Efficient Price Discovery report, which detailed how CME Bitcoin (BTC) futures affect Bitcoin price discovery.

The company concluded that “CME Bitcoin futures do more to price discovery than the associated spot markets.” And the researchers also suggested that:

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“CME Bitcoin futures have gained in importance. This is evident not only in trading volume and open interest, but also in the influence on spot pricing.”

Wilshire’s analysis rightly states that pricing in traditional markets is a controversial issue. The report adds that studies of pricing often show that futures markets lead most of the time. However, this does not mean that their conclusions on CME Bitcoin futures are absolute.

According to the report, CME Group, the leading derivatives venue, trades $ 5.15 trillion per day in its various markets. According to data from Nasdaq, that number equates to the daily volume of $ 430 billion in US stock markets.

These data show that the trend of derivatives volumes exceeding cash by 10 times is the norm rather than the exception.