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Bitcoin futures are becoming popular among large investors: CME Group

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Karol Rhodri
Karol Rhodri
Karol is a strong professional with a Master of Library & Information Science - MLIS focused in Mathematics and Computer Science from Empire Beauty School-State College. He has a strong belief that every technology-related company will surely adopt blockchain, it's just a matter of time.

The CME Group has reported increasing popularity of its bitcoin futures among the large investors. In quarter three of 2019, the number of open contracts raised by 61% when compared to that of last year. The number of outstanding positions also almost doubled from 2873 to 4629. Despite a 25% decline in bitcoin prices in the third quarter, demand for CME BTC futures reduced only by one percent from that of the second quarter.

The Chicago Mercantile Exchange (CME Group) operator has cited an increased interest of large investors in the bitcoin futures. As reported, the third quarter of this year has witnessed a hike of 61% in the number of open contracts when contrasted with 2018.

“Despite the pullback in bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily OI of over 4.6K contracts, up 61% vs. Q3 2018,” the company posted on Twitter.”

The number of outstanding positions raised from 2873 last year to 4629 this year. Furthermore, in spite of a 25% plunge in bitcoin prices in Q3, the demand for CME BTC futures did not fall more than just 1% when compared to that of the Q2. A 10% rise is experienced in the average number of contracts traded daily. According to CME, the increase is equivalent to 27,70 BTC or $289 million.

Almost 50% of the CME bitcoin futures bitcoin-futures trading volume arose from outside the United States, with 26% originating from the Asia-Pacific region and 21% from Europe and the Middle East. Earlier this year, CME declared the launch of another bitcoin derivative instrument, options on bitcoin futures. Tim McCourt, managing director of the company, stated that they await a high demand for new products from Asian and European traders.

Disclaimer: Coinnounce's views are not necessarily reflected in the articles published, and they are the sole representation of the author's opinions. Article's information should not be taken as investment advice. Risks are involved in cryptocurrency investments and trading. Readers are urged to carry out extensive research before making a decision.

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