CME: Bitcoin (BTC) Future Volume Up Nearly 100% Since Last Quarter

CME: Bitcoin (BTC) Future Volume Up Nearly 100% Since Last Quarter
28 Jul

The Chicago Mercantile Exchange (CEM) Group Inc. has released its recent data which indicates that the Average Daily Volume (AVD) of Bitcoin futures has almost doubled over the first quarter.

The report also shows a substantial increase in the Open Interests on the financial market company based in Chicago.

Bitcoin Future Volumes Spike

CME launched its Bitcoin future contract in December 2017 when the digital asset reached a peak of $20,000.

Bitcoin was faced with a heavy decline in the following weeks and as such, BTC future volumes dropped.

However, things began to change in the second quarter of the year. The recent data released by CEM shows that the Average Daily Volume in its’s Bitcoin futures rose by a staggering 93% from the first quarter.

In numbers, CME recorded an AVD of 1,854 in the first quarter which jumped to 3,577 in the second quarter.

Bitcoin futures volumes rose to its all-time high in April, when CME and CBOE accounted for a combined $670 million. The report states showed that CME traders exchanged more than 11,000 contracts, worth 56,010 BTC at the time.

According to CME’s Bitcoin Reference Rate (BRR) for April 25, the contracts equated to more than $497 million in single-day volume.

In addition to a rise in future volumes, CME also stated that it also experienced a rise in the rate of Open Interest (OI) or the number of open contracts on Bitcoin futures.

The open interest of a security rises as traders open more contracts, indicating more demand.

Open Interests exceeded 2,400 on CME in the second quarter, which is equivalent to a 58 percent increase from the first quarter when it recorded Open Interests of 1,523.

Rising Gains

Bitcoin has maintained a monumental strong run for a week. As the price of BTC rises, so also has the BRR prices on CEM.

The BRR price has risen over the last one week. Starting off at $6,275.68 on July 15, and rising to $8,196.50 as at press time. Investors that predicted a rise in future contracts have a lot to gain given current prices.

BTC Futures are gaining popularity

Futures offer quick and cost-effective methods to trade in financial and commodity markets. They also allow participants to lock in future prices.

This rise in Bitcoin futures is a strong indication of increased interest from investors who speculate on the Bitcoin market without necessarily owning the digital asset.

Futures are evolving as fast as the crypto industry. Now, consumers do not necessarily need to own digital wallets or handle private keys related to Bitcoin trading to use futures. 

Futures can now be financially settled without the need to exchange Bitcoin, making them an appealing product for those investors who like to predict the market without owning any Bitcoin.

Futures is becoming more popular among investors and financial institutions. Early this month, one of the largest Exchange-Traded Fund (ETF) suppliers in the world BlackRockannounced that it had formed a working group to consider whether the company should invest in Bitcoin futures.



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