Binance Overtaken by CME in Bitcoin Futures Open Interest
When Bitcoin surpassed the $37,000 mark after 18 months, Chicago Mercantile Exchange (CME) took over Binance’s dominance in Bitcoin futures open interest. This means that CME now holds the largest share of Bitcoin futures open interest globally, overtaking the popular cryptocurrency exchange.
This metric is used to measure the total number of outstanding contracts in futures and options markets. It represents the total number of contracts held by traders at any given point in time and is determined by the difference between the number of contracts held by buyers (longs) and sellers (shorts).
CME’s Growing Influence Raises Concerns
Analysts are questioning whether CME’s increasing amount of Bitcoin futures open interest will address the United States Securities and Exchange Commission’s (SEC) concerns about market manipulation. The SEC has historically been hesitant to approve spot Bitcoin ETF applications due to concerns about the depth of Bitcoin markets and potential manipulation.
Historical Concerns from SEC
The SEC has previously deemed spot Bitcoin ETF filings as “inadequate” due to the omission of declarations related to the markets in which the Bitcoin ETFs will derive their value. This has been a point of contention for major players like BlackRock and Fidelity, leading to regulatory hurdles in approving spot Bitcoin ETF applications.
Hot Take: CME’s Rise Signifies Regulatory Hurdles for Crypto
CME’s overtaking of Binance in Bitcoin futures open interest highlights the growing influence of traditional derivatives markets in the crypto space. This shift raises concerns about regulatory hurdles for cryptocurrencies, especially in addressing market manipulation and depth of crypto markets.
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