Bitcoin Surge Triggers 950% Increase in CME Futures Contracts

The Chicago Mercantile Exchange (CME Group) has recorded a significant increase in the volume of Bitcoin futures contracts on their platform, following the surge in Bitcoin price on April 2.

On April 4, CME Group recorded a total transaction of about 22,542 Bitcoin contracts worth 5 BTC. Given that the price of Bitcoin was $5,000 for most of the day, it will not be wrong to say that the platform handled a sum of $563 million in total traded Bitcoin contracts.

Those figures also mean that CME Group posted a 950% increase in traded volume since the surge in Bitcoin, a huge boost going by the fact that the platform only posted its lowest trade volume of about 2,162 contracts in February. However, since CME’s Bitcoin Futures are settled in cash instead of the actual Bitcoin, some may argue that such high trading volume did not have much impact on the global Bitcoin market.

Well, according to the eToro’s senior market analyst Mati Greenspan at eToro the Wall Street contracts are still a very important part of the market despite the are on paper currency and not Bitcoin.

As we also reported, a Bitwise research work shows that the Futures contracts hold a significant share in the volume of Bitcoin trading volumes globally since a large chunk of data provided by Coinmarketcap are fake.

Perhaps to support that claim, data from analytics company Messari revealed that $684 million Bitcoin where also traded on different major crypto exchanges, a figure that is just $121 million less than what CME Group posted.

If the Bitcoin rally were to continue into the new week, then there is no doubt that we are likely to see both trading venues handle more volumes.

Meanwhile, the crypto industry continues to anticipate the launch of ICE backed Bitcoin Futures Platform Bakkt which unlike CME wants to distribute real Bitcoins to traders upon the expiration of futures contracts rather than a cash payment.

While Bakkt is yet to launch its platform because of delay in regulatory clearance, another competitor Coinflex, a platform endorsed by Polychain Capital and Digital Currency Group has already emerged as the world first exchange to offer physically-delivered Bitcoin futures contracts.

 

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