CME becomes the second largest Bitcoin futures market

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The CME bitcoin futures market overtook Binance futures and became the second largest bitcoin futures exchange (BTC) through open interest. The data shows that institutional volume is rapidly gaining a larger share of the cryptocurrency market.

On October 10, Skew reported that the open interest of the CME Bitcoin futures market rose sharply by 1,500 contracts. Since then, the price of BTC has soared 9% to over $ 13,000 in three days.

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The growing open interest of CME futures contracts on BTC is likely to have a positive impact on BTC price, especially as a recent study found that “CME Bitcoin futures do more to pricing than the related spot markets.”

Bitcoin Exchange Futures Open Interest. Source: Skew

A significant increase in institutional demand for Bitcoin in a short period of time

The Bitcoin futures market has been dominated by two major players for many years: BitMEX and OKEx. Last year, the new generation futures exchanges began to expand rapidly, which resulted in Binance Futures, Bybit and Huobi competing against companies like BitMEX.

The CME launched its Bitcoin futures contracts on December 17, 2017. Within three years, according to Skew, it has become the second largest BTC futures exchange through open interest.

The term open interest refers to the sum of the value of all actively opened long and short futures contracts. It is used to measure the activity of the market by measuring the amount of capital that is put into the futures market.

Data from Skew shows that CME now includes $ 790 million worth of BTC long and short contracts. It is just $ 19 million behind OKEx, which was the dominant futures exchange in 2020.