Bitcoin

Read

<div class="cryptonews">
 <p class="is-style-lead">CME’s notional open interest has surged to $3.57 billion, securing its position as the second-largest exchange in the trading of standard Bitcoin and perpetual futures.</p>
 <p>The Chicago Mercantile Exchange (CME), a regulated entity, is ascending the ranks among the largest exchanges for Bitcoin (BTC) futures and perpetual futures trading by open interest, evoking memories of the initial phases of the 2020-2021 bull market.</p>
 <p>According to Coinglass, CME has seen its notional open interest (OI) rise to $3.57 billion, elevating it to the second-largest Bitcoin futures exchange from its previous fourth-place standing just weeks ago.</p>
 <p>Notional open interest is defined as the U.S. dollar value tied to the number of active or open contracts.</p>
 <p>Binance, an offshore unregulated exchange, continues to dominate the market with a notional open interest of $3.85 billion, which is about 8% higher than that of CME.</p>
 <p>However, CME has recently achieved a milestone by surpassing 100,000 BTC in open interest for its cash-settled futures contracts for the first time. Additionally, CME’s market share in the Bitcoin futures sector has reached an all-time high of 25%.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Bitcoin hits $35k: deep dive into prospects
 </div>
 <p>CME offers standard Bitcoin <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> contracts equivalent to 5 BTC and micro contracts that are one-tenth of 1 BTC. It also provides ether <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> with a contract size of 50 ETH and micro <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> equivalent to one-tenth of 1 ETH.</p>
 <p>Most of the open interest on offshore <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>s is concentrated in perpetual <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a>, which are unique in that they have no expiration date and employ a funding rate mechanism to align with the current spot price.</p>
 <p>Market observers suggest that CME’s recent growth could indicate an institutional-led rally in Bitcoin. The cryptocurrency has seen a 27% increase this month, fueled by macroeconomic uncertainty and optimism over spot <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>-traded funds (ETFs).</p>
 <p>Retail investors have also contributed to this trend. Data from Matrixport shows that the rolling five-day volume in ProShares’ leading Bitcoin futures ETF soared by an astonishing 420% to $340 million last week. This ETF primarily invests in CME Bitcoin futures.</p>
 <h2 class="wp-block-heading" id="analyst-says-cme-ascent-signals-fading-bearish-views">Analyst says CME ascent signals fading bearish views</h2>
 <p>André Dragosch, the head of research at Deutsche Digital Assets, offers a different perspective. He argues that CME’s growth is more likely due to the unwinding of bearish positions on offshore <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>s rather than an increase in long <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> positions.</p>
 <p>Dragosch notes that although CME’s share in Bitcoin futures open interest has risen, the overall amount of Bitcoin futures and perpetual open interest has not seen a significant uptick in Bitcoin terms.</p>
 <p>This suggests that the recent price surge may be more attributable to a short squeeze and a decrease in aggregate open interest.</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">This take doesn't make sense.<br><br>CME's share in $BTC futures OI might have increased relative to other exchanges but the aggregate amount of BTC futures &amp; perps OI has not increased in BTC terms, implying that long futures positions were not the main driver behind the recent… https://t.co/9y6xAcmvzn pic.twitter.com/imHZNib4ls</p>— André Dragosch | Bitcoin &amp; Macro (@Andre_Dragosch) October 24, 2023
   </blockquote>
  </div>
 </figure>
 <p>The market is also buzzing with anticipation over the potential approval of a Bitcoin spot ETF, which has further driven up Bitcoin’s price.</p>
 <p>Earlier this month, BTC rallied toward the $35,000 mark, largely due to market speculation surrounding the spot ETF.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Bitcoin holds above $34k, sell signal is still there
 </div> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/cme-becomes-second-largest-bitcoin-futures-exchange-surpassing-binance-tbt68332.html">https://thebittimes.com/cme-becomes-second-largest-bitcoin-futures-exchange-surpassing-binance-tbt68332.html</a></p>

CME becomes second-largest Bitcoin futures exchange, surpassing Binance

Table of Contents

TheBitTimes

Other articles published on Oct 30, 2023

XRP Healthcare Expands to the Middle East: Ripple’s Plans for Institutional Adoption

Bitcoin’s weekly surge could be driven by liquidity shortage

Bitcoin’s mining difficulty adjusts upwards for the fourth consecutive time

Cardano Records Impressive Q3 Figures, Can ADA Retest $0.4?

Shiba Inu Price Seismic Bullish Shift Eyes Sharp Climb Past $0.00001 – Key Levels To Watch

Crypto Might Contribute to PayPal Success, Here's How

Join our free newsletter for daily crypto updates!