CME Surpasses Binance as Largest Bitcoin Futures Exchange
The Chicago Mercantile Exchange (CME) has recently taken over as the world’s largest crypto exchange, surpassing Binance to become the biggest Bitcoin futures exchange. This significant shift was driven by a surge in Bitcoin Futures Open Interest, largely due to massive liquidations caused by sudden price surges in Bitcoin.
CME’s Bitcoin Futures OI Swells
According to Coinglass data, CME’s number of Bitcoin Futures in Open Interest stood at about 109K BTC, worth $4 billion, down about 2% in the past 24 hours. Meanwhile, Binance currently holds a share of about 102K BTC valued at $3.77 billion, down about 12% in the past 24 hours. This is the first time in two years that Binance has been displaced from the top spot.
With CME controlling a 24.3% share in the metric at the time of writing and Binance controlling about 22.95%, it is clear that there has been a significant surge in BTC Futures Open Interests this year.
Just a few weeks ago, CME was ranked as the 4th largest exchange. Late last month, CME controlled over 100K BTC in Bitcoin Futures Open Interest, highlighting an increasing demand from institutional traders.
Massive Liquidations and ETF Mania Behind the Surge
The displacement of Binance from the top spot was driven by massive liquidations and leverage removal due to sudden BTC price surges. Reports show that about $400 million of longs and shorts were liquidated, marking the highest amount since August. The price action was fueled by spot ETF anticipations after reports suggested the registration of a corporate entity called iShares Ethereum Trust in Delaware.
Hot Take: CME’s Dominance Reflects Institutional Interest in Crypto
The surge in CME’s Bitcoin Futures Open Interest and its displacement of Binance as the largest exchange reflects an increasing interest from traditional financial institutions in crypto assets. The ongoing excitement around spot Bitcoin ETFs and rising number of applications are driving market share gains for CME, further solidifying its position as the leading Bitcoin futures exchange.
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