- According to Skew, a crypto derivative startup, the Chicago Mercantile Exchange now accountable for 25% of the whole market capital.
- Over the past 30 days, the total amount of open interest CME Bitcoin options has jumped ten times.
- CME’s open interest broke records and was the highest on six consecutive days from June 5 to June 10.
According to the data provided by Skew, a crypto derivative startup, CME is now accountable for 25% of the whole market capital. The CME’s Bitcoin Options said to be responsible for this. Over the past 30 days, the total amount of open interest CME Bitcoin options has jumped ten times.
— skew (@skewdotcom) June 20, 2020
On May 11, it was approximately $35 million, and on June 11, it increased to 373 million US Dollars. CME’s open interest broke records and was the highest on six consecutive days from June 5 to June 10.
CME In Second Place In Terms Of Demand After Deribit
The Chicago Mercantile Exchange is a global company, and when it comes to financial derivatives, it is the world’s largest exchange. The CME particularly trades assets, including currencies, agricultural products, metals, stock indexes, and so on.
And after a lively month, the CME is in second place when it comes to demand just after unregulated and freewheeling Dutch exchange, Deribit.
Unfortunately, Deribit accounts for 68% of the world’s total open interest. And with Ethereum and Bitcoin worth $1 billion likely to expire in the coming week. The CME is at 24%, and in the race are LedgerEx, OKEx, and Bakkt.
Institutional Investors Keen Towards The Bitcoin Derivative Services
The overwhelming growth of CME is because of the ever-growing interest of the institutional investors in the Bitcoin derivative products.
However, in spite of the fact that CME is facing serious growth, considering the last few weeks. They still haven’t announced any plans to introduce additional cryptocurrency products. For now, they are just focusing on Bitcoin products.
Implies Widespread Bitcoin Adoption
Matt Kaye, the managing partner at Blockhead Capital, says that the increase in CME’s Bitcoin option is a sign that institutional investors are now adopting the concept of digital assets on a large scale.
He also added that the Chicago Mercantile Exchange has high costs when it comes to capital and is often closed on weekends. So anyone who is supposedly trading here is taking risks just for the sake of his own, and there is no other option.
The analysts have high expectations from the traded derivatives. They believe that these will provide an extra edge for gaining exposure shortly. The entire ecosystem of the Bitcoin derivative trading is the main contributor to its trading volume and serves as the cherry on top.