CME Bitcoin Futures See Open Interest Surge as Global Volume Hits $25B

Published at: Jan. 17, 2020

Bitcoin (BTC) derivatives trading looks set to reach record levels this month as volume spikes and open interest hovers near all-time highs.

Data from CME Group shows that as of Jan. 16, open interest for its futures products alone totaled 5,328 contracts — or 26,640 BTC ($237 million).

Open interest on track for record

The figure is higher than any monthly close CME has seen since it debuted in December 2017, with July 2019 currently in the lead with 5,252 contracts.

Open interest did surpass current levels earlier in January, reaching around 5,400 according to the latest data from United States regulator the Commodity Futures Trading Commission, or CFTC, published on Jan. 7.

As Cointelegraph reported, futures offerings have received significant attention from both investors and commentators as new participants appeared to fuel a Bitcoin price rise in 2020. 

Bitcoin futures 1-month overall volume. Source: Skew Markets/ Twitter

As BTC/USD accelerated towards $9,000 this week, overall futures trading volume likewise saw a significant uptick. According to unofficial data from monitoring resource Skew Markets, worldwide volume hit $25 billion — the most since late October. 

“I think that's a strong signal indicating that we're reversing now and probably have bottomed out,” regular Cointelegraph contributor Michaël van de Poppe commented about the latest data.

2020 the year of “clear” institutional adoption

CME launched a new product in the form of options on Bitcoin futures earlier in January. The release came just days after competitor FTX did likewise.

The company said it considered the options a “success” as volumes reached 275 BTC by day two.

Catering to long-term demand from institutional investors has long been a preoccupation for cryptocurrency businesses. In its 2019 retrospective this week, venture capital giant Grayscale revealed annual investment totals of over $1 billion. 

A record for the firm, executives announced they now it was “clear” that the industry was seeing institutional adoption.

Tags
Bitcoin
Markets
Bitcoin Futures
Cme
Related Posts
Study finds CME drives Bitcoin price, but it excludes stablecoin volumes
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 …
Bitcoin / Oct. 20, 2020
High priced $32K Bitcoin options show some pro traders expect more upside
A month ago, one would be hard pressed to find any investor who would have expected a $32,000 Bitcoin (BTC) price for January. At the time, a 140% upside was needed from the $13,300 price on Oct. 30 and this seemed quite far fetched. Therefore, the January $32,000 BTC call (buy) options traded at Deribit for a meager $67, or 0.005 BTC in late October. Fast forward to now, and the same call option peaked at $705. That’s an almost 10x gain in less than four weeks. Keep in mind that despite the rally to $19,484, an additional 67% upside …
Bitcoin / Nov. 29, 2020
Impending CME gap close could propel Bitcoin price to $18,000
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 / Nov. 13, 2020
CME Bitcoin Futures Hit $10K as BTC Price Finally Nears Five Figures
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 …
Bitcoin / Feb. 7, 2020
CME Group Expects New Bitcoin Options to See High Demand in Asia
The Chicago Mercantile Exchange (CME) Group expects to see high demand in Asia for its forthcoming Bitcoin (BTC) options product. Tim McCourt, CME Group’s global head of equity index and alternative investment products, told news outlet South China Morning Post on Oct. 10 that the new crypto derivative product is expected to prove as popular as the exchange’s existing BTC futures. Miners will be able to hedge their costs According to the report, as much as half of the volume for CME’s current BTC futures is accounted for by Asian and European traders. McCourt told reporters that the forthcoming options …
Adoption / Oct. 10, 2019