CME's Rise in Bitcoin Futures Rankings Signals Growing Institutional Interest

CME has risen to second place in terms of bitcoin futures open interest, passing Binance and BitMEX.

Oct 23, 2020 at 10:51 a.m. UTC
Updated Sep 14, 2021 at 10:22 a.m. UTC

In sign of increased institutional participation in cryptocurrency, the Chicago Mercantile Exchange (CME) has surpassed prominent cryptocurrency exchanges to become the second-biggest bitcoin futures platform by number of open contracts.

  • As of Thursday, bitcoin futures contracts worth $790 million were open on the CME, according to data source Skew.
  • That's 15.8% of the global open interest tally of $5 billion – the second highest contribution among major exchanges.
  • The CME was ranking fifth on the list of biggest futures exchanges by open interest on Oct. 1.
  • The exchange's contribution to global open positions has jumped from 10% to 15.8% this month alone.
  • At the start of the year, the exchange accounted for a meagre 4% of the global open interest.
  • "The CME's rise is predominantly led by institutional participation, as most entrants from that segment are prohibited from dealing in unregulated derivatives listed on retail platforms such as BitMEX and Binance," Matthew Dibb, co-founder and COO of Stack Funds, told CoinDesk.
  • The CME's regulated product also offers high standards of compliance that institutions must adhere to.

Top bitcoin futures exchanges as per open interest

  • While the CME ranked second on Thursday, Malta-based OKEx retained the first place, accounting for nearly 20% of total open interest.
  • In the third position was Binance, the world's largest cryptocurrency spot exchange by trading volumes, which accounted for 14.3% of the total open interest. The controversial perpetuals giant BitMEX ranked fourth.
  • Notably, BitMEX's share of global open interest has declined from 18% to 12% this month in the wake of charges that recently hit the firm in the U.S.
  • On Oct. 1, U.S. authorities charged BitMEX with illegally operating an unregistered derivatives-trading platform that accepted U.S. customers, triggering a major outflow of funds from the exchange.

View

  • The CME's share of global futures open interest has risen alongside bitcoin's three-week rally from $10,500 to $13,300.
  • At press time, bitcoin is changing hands near $13,000, representing a 20% gain on a month-to-date basis.
  • Bitcoin's 14-day relative strength index is now reporting overbought conditions with an above-70 print.
  • However, in a strong trending market, the indicator tends to stay overbought for a prolonged period and traps sellers on the wrong side of the market.
  • Disclosure: The author holds small positions in bitcoin and litecoin.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
First Mover Asia: USDC Hasn’t ‘Flippened’ USDT, but Trader Preferences Are Changing; Cryptos Rise Despite Bearishness

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

2
Musk Sets New Condition for Twitter, Citi Says Terra’s Fallout Unlikely to Hit Wider Financial System

The most valuable crypto stories for Tuesday, May 17, 2022.

The most valuable crypto stories for Tuesday, May 17, 2022.

3
Market Wrap: Cryptos and Stocks Mixed Amid Bearish Sentiment

BTC is stabilizing around $30K while stock market volatility begins to fade.

BTC is stabilizing around $30K while stock market volatility begins to fade.

4
New Data Shows Underground Bitcoin Mining Thriving in China

The U.S. has also expanded its lead in the global hashrate competition.

The U.S. has also expanded its lead in the global hashrate competition.