Based on a recent report, a new record for open interest in CME Group’s bitcoin (BTC) futures product has been set and this signifies the continued growth of the product despite the increase in the number of new account sign-ups.
Increase in CME’s Group Futures Product Usage
Since it was released, over 2,960 accounts have used CME’s Group futures product for trading across all types of clients and time zones.
A new report showed that over 950 new accounts have been created in 2019 alone, indicating an increased rate of 30% in total client registration.
Even the number of entities that hold contracts worth at least 25 BTC (worth $280,000 at press time) and large open interest holders increased to 49 from 46 which was realised late June.
According to a representative from the firm, open interest is leading in all four expiries, indicating that CME Group “is creating a forward curve for the crypto markets so that investors can better manage price, ”
Open interest has continued to increase at a steady rate, it is currently at an all-time high of 6,069 contracts towards the end of June and displaying a strong demand.
Furthermore, a partner at Gryphon Labs an open-source framework for algorithmic trading in digital currency markets, Gareth MacLeod stated that the recent developments could be a sign that the native financial industry is becoming more interested in crypto.
He said:
“It’s most likely traders in the traditional finance industry using CME to take a long position off of news about Libra.”
Considering native finance’s apprehension in relation to crypto because of its wild price fluctuations, futures contracts provide reliability, stability, and reduced risk when it comes to operating large portfolios.
MacLeod further stated that larger financial institutions and Professional traders prefer to operate using a familiar platform than a native crypto exchange because of interoperability and familiarity with their own Bloomberg terminals.
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