CME suspends bitcoin futures trading amidst high volatility

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  • The third-largest stock exchange in the world, CME from Chicago has suspended its Bitcoin futures trading amidst high volatily
  • The trading has been suspended for some time now
  • CME Group has witnessed a huge gap of more than $3000 till now. 
  • CME (Chicago Mercantile Exchange) also gives monthly contracts for a cash settlement

CME Group from Chicago has temporarily suspended its Bitcoin Futures trading due to high volatility. During the weekends, while the Futures market closed, the  bitcoin market  was trading in full swing and the market was open 24/7. 

During the closure of the futures market, there is a big gap observed

During the closure of the futures market, there is a big gap observed. The latest gap is much bigger only if bitcoin managed to hold on to its recent rallies. CME Group has witnessed a huge gap of more than $3000 till now. 

In December 2017 when bitcoin was trading on the bullish run, CME had launched Bitcoin Futures. It was launched just a day after the cryptocurrency broke the record highs of its previous bull run. CME is very popular among the traders and has become one of the most favourite platforms in just three years of the launch. The exchange also gives cash-settled bitcoin futures in the US. It is the only regulated platform. Institutional investors show a lot of interest in the CME besides other crypto Future exchanges. 

Investors feel very comfortable in trading on bitcoin futures as it gives the free hand to them without even holding the bitcoin for long. Similar to commodity Futures or that of a stock exchange, bitcoin futures allow investors to speculate on a future price of bitcoin. 

CME (Chicago Mercantile Exchange) also gives monthly contracts for a cash settlement

It means that the investor can take cash instead of bitcoin once the contract is settled. CME is one of the world’s largest bitcoin Futures market. The Chicago board options exchange(CBOE) gave the first contract on December 10, 2017. However, in March 2019 the board discontinued offering new contracts. 

Later the bitcoin futures platform was opened on December 18, 2017. Hence there is also an options facility on bitcoin Futures available for the traders now. In November 2020, CME had garnered a lot of attention as the cash-settled bitcoin futures hit an all-time high to $1billion. When the bitcoin prices were up around $18,000, the milestone of the bitcoin futures was settled and the annual revenue of the largest platform was $4.9billion. 

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