CME Emerges as Second-Largest Bitcoin Futures Exchange with $3.57 Billion Open Interest
The Chicago Mercantile Exchange (CME) has climbed the ranks to become the second-largest exchange for Bitcoin futures and perpetual futures trading by open interest. CME’s notional open interest has surged to $3.57 billion, surpassing its previous fourth-place position. Binance, an offshore unregulated exchange, still holds the top spot with a notional open interest of $3.85 billion.
CME has also achieved a significant milestone by surpassing 100,000 BTC in open interest for its cash-settled futures contracts. Additionally, CME now commands a market share of 25% in the Bitcoin futures sector, an all-time high.
Market observers suggest that CME’s recent growth may indicate an institutional-led rally in Bitcoin. Retail investors have also contributed to this trend, as evidenced by the surge in volume for ProShares’ Bitcoin futures ETF, which primarily invests in CME Bitcoin futures.
Analyst Offers Alternative View on CME’s Growth
André Dragosch, head of research at Deutsche Digital Assets, argues that CME’s growth is more likely due to unwinding bearish positions on offshore exchanges rather than an increase in long futures positions. Dragosch points out that while CME’s share in Bitcoin futures open interest has risen, the overall amount of Bitcoin futures and perpetual open interest hasn’t seen a significant uptick in Bitcoin terms. This suggests that the recent price surge may be driven by a short squeeze and a decrease in aggregate open interest.
Hot Take: Anticipation Grows for Potential Approval of Bitcoin Spot ETF
The market is abuzz with anticipation over the potential approval of a Bitcoin spot ETF, which has further fueled Bitcoin’s price increase. Earlier this month, BTC rallied towards the $35,000 mark, largely driven by market speculation surrounding the spot ETF.
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