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CME Sees Bitcoin Options Demand Rise 10x In A Month


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Bitcoin’s price is staying volatile in these trying times, hopping up and down on a whim. In the wake of this, the Chicago Mercantile Exchange (CME) had experienced a massive influx in open interest in Bitcoin options contracts. The interest jumped up to $373 million on the 10th of Jun, as opposed to the $35 million it was on the 11th of May. What this means is that the total open interest in Bitcoin options had increased by a factor of more than ten, all within just 30 days’ time.

Taking A Bite Out Of Deribit

The total open interest within the CME had managed to reach record highs, doing so for six consecutive days, even since the 5th of June, 2020.

What this means is the Bitcoin options on the CME is the second-most in demand, only being beaten by the Deribit exchange. Deribit has long since been the leader within the Bitcoin options arena, and it seems that this remains unchanged, overall. As it stands now, however, CME represents about 20% of the total market for Bitcoins options trading, and it seems that this increase in market share ate directly out of Deribit’s share, in turn.

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A Futures Rollercoaster

Besides CME and Deribit, the top two competitors in the Bitcoin options market, other providers include Bakkt, LedgerX, as well as OKEx. As it stands now, however, their market shares remain more or less unchanged.

The CME Bitcoin futures had not been so reliable in its demand growth compared to the options, however. The demand has been going up and down like a rollercoaster, but the CME had experienced three straight record days when it came to the open interest of Bitcoin futures,  recording it last month. The open interest managed to almost touch the $500 million mark, at one point.

It was just earlier this month when the daily volumes for the Bitcoin futures on the CME managed to achieve an impressive $795 million.

Competition Is Fierce

The CME introduced its Bitcoin futures offering back in the big crypto rush of December 2017, pushing the asset’s price ever further in its legendary all-time-high. Ever since, the CME has stood as a leader when it comes to USD-settled Bitcoin futures. USD-settled Bitcoin futures will forever stand as an investment instrument that institutions seek regularly, and thus CME will always have a demand for it.

The exchange, predictably headquartered in Chicago, had started its offering of Bitcoin options earlier this year. Since then, the CME has only seen increased demand for it. Ironically enough, Bakkt’s physically-settled Bitcoin options, which the firm had launched a month prior to CME, still remain on the dull side.

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