Driven by rising institutional demand, the Chicago Mercantile Exchange (CME) has become the second largest futures exchange after OKEx.
According to data from the encrypted data website Skew, CME’s Bitcoin futures market replaced Binance Future as the second-ranked Bitcoin futures exchange in terms of open interest. Data shows that CME currently has more than $790 million in bitcoin long and short contracts, only behind OKEx by about $19 million.
According to a report released by Skew this week, the number of open positions in the CME Bitcoin futures market increased significantly by 1,500. In the following three days, the price of Bitcoin soared by 9% to more than $13,000.
This indicator may have a positive impact on the price of Bitcoin. Wilshire Phoenix stated in a report this week that, compared to other futures markets, CME’s Bitcoin futures contribute more to Bitcoin price discovery.
The increase in institutional trading volume has pushed CME Exchange to gain a larger share of the crypto market. In the past three days, the overall trading volume of the Bitcoin futures market has risen sharply, and the increase in CME open positions is higher than that of other trading platforms that focus on individual investors.
Major institutional markets, including Grayscale Bitcoin Trust, have reported a surge in institutional capital inflows. According to an earlier report by “Beijing”, although the rise in the price of Bitcoin was the main reason for the increase in NAV, Grayscale’s net assets under management soared by $300 million in one day. In addition, the daily trading volume of the options market has also reached a record high, which is also the first choice of professional traders and high-net-worth investors.
Social Capital CEO Chamath Palihapitiya believes that more banks and institutions will support Bitcoin soon. He mentioned, “After the news of PayPal came out, major banks were meeting to discuss how to support Bitcoin.”
As the billionaire Wall Street investor Paul Tudor Jones said, although financial institutions mainly use Bitcoin as an inflation hedging tool and long-term asset allocation, the short- and medium-term prospects of Bitcoin against the US dollar are still bright.
