Posted 4 months ago | by @devadmin
Bitcoin derivatives trading is becoming more popular as institutional investors flood the market with their capital and no better sign of that is that the CME Group has taken over the Bitcoin Future’s market once held by OkEx.
Institutional investors are here🏦💰 pic.twitter.com/6GgQdrMw12
— Arcane Research (@ArcaneResearch) November 27, 2020
CME Group recently became the world’s largest Bitcoin BTC futures market following a surge in its open interest contracts over the past month, according to Arcane Research a market intelligence firm that analyzes data.
Arcane Research announced on Twitter that CME Group’s contracts had overtaken OKEx as the world’s largest Bitcoin futures market. The firm cited data from another market intelligence firm named Skew. Arcane expressed open interest in CME’s Bitcoin futures contract had reached $1.16 billion. While the previous holder of Bitcoin future’s volume was recorded at $1.07 billion.
OkEx has faced controversy recently with its CEO arrested then released. But within that time frame users of OkEx have been unable to withdrawal their funds from the exchange with thousands of people withdrawing their funds now that they are available.
“Institutional investors are here,” Arcane proclaimed on Twitter.
CME’s Bitcoin futures market has multiplied over the past month, with more traders seeking exposure to Bitcoin as the number one cryptocurrency nears its all-time highs, Coin Telegraph reported.
It’s not just the CME group, cryptocurrency exchanges Binance and Huobi have also risen as significant futures platforms. Based on open interest, they are ranked third and fourth-largest for BTC futures, according to Arcane Research.
Bybit also appeared on Arcane’s list, which announced earlier this week that it will in the near future launch a quarterly Bitcoin futures contract.
The futures market is an important factor for Bitcoin adoption because it means traditional investors are jumping into the market. While the 2017 bull market was driven largely by retail traders, the current uptrend has been fueled by deeper institutional players as Bitboy Crypto has highlighted on Youtube.
Bitcoin has surged back to $18,000 following a sell-off over the Thanksgiving holiday. It’s also worth mentioning that Bitcoin’s CME future’s contract expired last week, which is usually followed by volatility leading up to its expiration date.
Bitcoin is currently trading at [FIAT: $18,109.51] UP +2.4% in the last 24 hours according to Coingecko at the time of this report.