All-Time High for CME Bitcoin Futures: $500 Million in Interest

May 11, 2020 11:33 AM UTC

The crypto community is excited about the most anticipated event in its history, the third Bitcoin Halving. Hours before the event, Bitcoin is trading at around $8,800 after the March meltdown. It seems that Bitcoin futures markets have seen similar excitement.

CME’s bitcoin futures market open interest has grown far quicker compared to other futures markets.

The Arcane Research, a cryptoanalysis firm, reported on May 7 that CME Group’s open interest for Bitcoin futures reached a new all-time high. According to the reports, the firm has hit more than $399 million in interest, surpassing the prior figure of $392 million in June 2019.

CME has recently seen a lot of interest from investors as the leading firms, Renaissance Technology’s flagship Medallion fund and US hedge funds, are intending to invest in bitcoin futures. Paul Tudor Jones, CEO of the Tudor Investment Corp. also highlighted interest in bitcoin futures.

The recent massive growth in regulated futures markets suggests growing institutional interest in bitcoin as an emerging macro hedge against money printing and geopolitical uncertainties,” said Qiao Wang, director of product at Messari and former quantitative trader at Tower Research. 

Rivals Leave the Bitcoin Future Market Open for CME 

In the U.S, CME rivals are facing a cold wind. For instance, the CBOE ceased its bitcoin futures service in June 2019 in the wake of low trading volume over more than a couple of years. Another competitor, Bakkt, is also facing similar issues and currently only covers around 5% of the U.S. bitcoin futures market.

As most competitors are facing issues in keeping the pace CME continues to accelerate faster than other exchanges.

The recent growth of open interest in our bitcoin futures contract demonstrates market participants are increasingly turning to CME Group to express views and manage their risk amid ongoing global uncertainty,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “We are committed to continuing to provide our customers with the risk management tools and robust liquidity they need to navigate this challenging environment.”

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