Institutional exposure to cryptocurrencies via derivatives continued to grow in the second quarter, as CME Group’s newly launched Bitcoin (BTC) micro contract received considerable uptick in its first two months of trading. Since launching on May 3, CME’s Micro Bitcoin futures contract has already surpassed 1 million contracts traded, the Chicago-based derivatives market announced earlier this week. CME executive Tim McCourt said the new product has been popular among institutions and day traders seeking to hedge their spot Bitcoin price risk. Denominated at 0.1 BTC, the micro contract is one-tenth the size of one Bitcoin. By comparison, CME’s main Bitcoin …
On Oct. 14, Wilshire Phoenix investment firm released its Efficient Price Discovery report, which detailed how CME Bitcoin (BTC) futures impact Bitcoin price discovery. The firm concluded that "CME Bitcoin futures contribute more to price discovery than its related spot markets." And the researchers also suggested that: "CME Bitcoin futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation." Wilshire's analysis correctly states that price discovery in traditional markets is a contested topic. The report also adds that studies on price formation often find that …
The Chicago Mercantile Exchange, or CME, has officially launched its newest Bitcoin (BTC) derivatives product, setting the stage for wider mainstream adoption of digital assets. TIm McCourt, CME Group’s global head of equity index and alternative investment products, said the new product will provide “an efficient, cost-effective way for a broad array of market participants — from institutions to sophisticated, active traders — to fine-tune their bitcoin exposure and enhance their trading strategies.” The Micro Bitcoin futures contract is worth 0.1 BTC, which provides traders with an additional tool to hedge their digital currency price risk. J. B. Mackenzie, managing …
Within the last hour, the Bitcoin (BTC) price surged through the $16,200 level to secure a new 2020 high at $16,473. The 6.62% move brings the top-ranked digital asset closer to closing a CME gap in the $16,465 to $16,570 zone and a growing number of analysts expect the price to break above the $17,200 level if the CME gap is closed. Despite the excitement surrounding Bitcoin’s surge to a new multi-year high, Cointelegraph contributor Michaël van de Poppe pointed out that Bitcoin has rapidly ascended to new highs without establishing strong supports. Van de Poppe said: “Many levels beneath …
Bitcoin (BTC) crossed the $10,000 mark for swathes of institutional investors this week as markets looked increasingly likely to surge higher still. Bitcoin 7-day price chart. Source: Coin360 CME reaches $10K per Bitcoin Data from CME Group’s Bitcoin futures shows the implied price of Bitcoin reaching the symbolic five figures on Feb. 6. Since then, a slight correction has sent BTC/USD a shade lower — it currently trades at $9,800, while CME’s futures are hovering around $9,900. CME Bitcoin futures 2-week chart. Source: TradingView Considerable enthusiasm has accompanied sustained price momentum for Bitcoin throughout the past week’s trading. After challenging …