The Chicago Mercantile Exchange (CME) has made a significant leap to become the second-largest Bitcoin futures exchange based on open interest. With CME’s open interest recently reaching $3.58 billion, it has surpassed Bybit and OKX, now trailing only behind the leading industry player, Binance, which holds $3.9 billion in open interest.
CME, a regulated exchange, offers cash-settled Bitcoin futures contracts in both standard and micro sizes. The growing interest in these contracts has resulted in trading volume on CME’s futures exceeding 100,000 BTC.
CME Captures 25% of Global Bitcoin Futures Market Share
CME has now captured a notable 25% share of the global Bitcoin futures market, a substantial portion of which is driven by institutional traders. The majority of trading activity takes place in CME’s standard futures contracts, coinciding with Bitcoin’s double-digit gains in October, pushing its price beyond $35,000.
Open interest in futures contracts represents the total value of outstanding contracts yet to be settled and serves as an indicator of the capital inflow into Bitcoin derivatives markets. Rising open interest is a sign of bullish sentiment, while declining interest indicates bearishness. CME’s rapid growth in open interest underscores the increasing appetite among institutional investors for exposure to Bitcoin.
It’s worth noting that offshore exchanges like Binance are prominent in offering perpetual futures contracts with no expiry date, while CME provides quarterly contracts. However, CME differentiates itself by bringing the credibility and oversight associated with a traditional player in the world of finance.
