CME becomes second-largest Bitcoin futures exchange as open interest surges


The Chicago Mercantile Exchange (CME), a regulated derivatives exchange that lists Bitcoin (BTC) futures, now stands simply behind Binance by way of notional open interest to rank second within the listing of BTC futures exchanges.

The CME’s open interest hit $3.58 billion on Oct. 30, pushing the regulated derivatives exchange platform to leap two positions from the earlier week. The CME overtook Bybit and OKX with $2.6 billion and $1.78 billion in open interest, respectively, and is only a few million away from Binance’s $3.9 billion.

Bitcoin Futures Exchange rankings by open interest. Source: Coinglass

The customary Bitcoin futures contract provided by CME is valued at 5 BTC, whereas the micro contract is value a tenth of a Bitcoin. Perpetual futures, as an alternative of atypical futures contracts, are the primary focus of open interest in offshore exchanges, as they arrive with out an expiration date and use the funding price technique to keep up their value parity with the market value.

Bitcoin open interest refers back to the complete variety of excellent Bitcoin futures or choices contracts available in the market. It measures the sum of money invested in Bitcoin derivatives at any given time. The open interest measures the capital flowing out and in of the market. If extra capital flows to Bitcoin futures, the open interest will improve. However, if the capital flows out, the open interest will decline. Hence, rising open interest displays a bullish sentiment, whereas a declining open interest signifies bearish sentiment.

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The CME’s rising open interest not solely helped the regulated futures exchange to climb to the second spot amongst futures crypto exchanges but in addition noticed its cash-settled futures contracts exceed 100,000 BTC in quantity. The rising interest of merchants within the Bitcoin futures market has additionally propelled the CME to realize 25% of the Bitcoin futures market share.

A majority chunk of funding into CME futures has come through customary futures contracts, indicating an inflow of institutional interest as Bitcoin registered an enormous double-digit surge in October, serving to it attain a brand new one-year excessive above $35,000.

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