Bitcoin Futures volume on the CME rises to 940%
Home News Bitcoin Futures volume on the CME rises to 940%
Marcus Misiak –
The Chicago Mercantile Exchange (CME Group) has been able to increase according to the volume of its Bitcoin Futures contracts, after the Bitcoin price on may 2. April is greatly increased.
On 4. April CME Group reported a total of around 22.542 Bitcoin contracts, each worth 5 BTC. In view of the fact that the price of Bitcoin was the biggest part of the day at about $ 5,000, had contracts, the CME Group, thus a total volume of approximately 563 million USD of traded Bitcoin.
On 1. April, Monday, before the rise of Bitcoin to over $ 5,000, the number of contracts traded was 2.162 piece. A day later, as the BTC to temporarily 20% increased and the crypto market grew insgesdamt overnight about 20 billion dollars, and increased the contracts to 455 per cent to a total of 12.015 contracts.
Because of the Bitcoin Futures contracts of CME to be settled in cash (and not in BTC), it is unclear what influence they have on the Bitcoin spot market. EToro’s Senior Market Analyst, Mati Greenspan, at least, is of the opinion that the BTC Futures are still a very important part of the market, although they may be handled only on paper and not by physical Bitcoins.
The Bitcoin futures market of delivery as a Whole in the last months of a turbulent Phase. In February 2019, the Top exchanges for Bitcoin Futures, the CBOE, and the CME recorded the lowest trading volume. The derivatives market seemed to lose momentum. In March 2019, the CBOE withdrew from the market and delisted its Bitcoin Futures for the same month.
The CME is also on the verge of a fierce competition with other Digital Asset platforms, one of which is the much-anticipated Bakkt, led by the Intercontinental Exchange[ICE], which is most prominent. In contrast to the CME Bakkt provides a number of physical Bitcoins to traders after the expiry of the Futures contracts and not just a cash payment.
In March, Terry Duffy, Chairman of CME, that stablecoins would improve the approval by the Supervisory authorities and explained what would help with the approval. He added that the number of use cases should be extended by crypto-currencies, so that they can be viewed as a method of payment, and not as a mere volatile investment vehicles.
Especially Duffy sheds light on the main cause for the regulatory obstacle for Cryptocurrencies. He explained that the principle of the limited supply, only a certain number of Bitcoins can be created (21 million), the main reason for this is that the regulatory authorities to do an approval for a Bitcoin ETF.
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