Institutionalists are keeping the pressure on the bitcoin derivatives market with massive investment. While this influx of capital influences the volatility of the asset, it has also made it possible to redistribute the cards among the players in this market. Thus, the CME Group has become the world’s largest Bitcoin (BTC) futures market. She therefore wrested the leadership position from OKex, whose total open interest amount over the past month was slightly below hers.
CME Bitcoin Futures Market Doubles To $ 1.16 Billion
The announcement of the performance of the CME Group was made by Arcane Research which includes company data on his Twitter account Skew. These indeed show that open interest in CME’s Bitcoin futures contract reached $ 1.16 billion against 1.07 billion dollars for OKex. A difference largely sufficient therefore to make CME the world’s largest Bitcoin futures market. Arcane Research was right in giving credit for this performance to the massive arrival of institutional investors in this market.
Indeed, CME Bitcoin Futures Market More Than Doubled as institutional investors became more interested in this product. There was thus a growing number of traders eager to take advantage of this offer even as the price of the asset continued to climb. CME is not the only platform to have benefited from the strong presence of these investors. Exchanges Binance and Huobi have also improved their base in this market. The figures recorded on the open interest of the futures contracts of each of the platforms allow them to become respectively third and fourth in the ranking now dominated by the CME.
The upward trend fueled by institutional investors
Investment manager, Wilshire Phoenix points out that CME futures contract volumes are thus critical to bitcoin price discovery. ” The importance of the CME is not only demonstrated by the volume of transactions and open interest, but also by the influence on the formation of spot prices », He declared.
Overall, the evolution of the bitcoin futures market remains a significant driver of bitcoin adoption. Growth is notably interpreted as an entry into play for institutional investors which inevitably benefits the asset price. The different platforms will have understood it, moreover, like Bybit which plans to launch a quarterly Bitcoin futures contract soon.
However, the strong presence of these investors will need to be closely monitored, as these futures contracts can cause high volatility in bitcoin as they approach maturity. The position adjustment made by the holders of these contracts at this time can ultimately slow the uptrend of the asset.