CME Surpasses Binance as Leading Holder of Bitcoin Futures Open Interest

Binance Bitcoin Futures Interest Flipped by CME After Bitcoin Price Exceeds $37K

The open interest for bitcoin futures has been overtaken by the Chicago Mercantile Exchange (CME), signaling a major “flippening” in the market. This shift in dominance occurred following Bitcoin’s surge past the $37,000 mark, a milestone it hadn’t reached in over 18 months. According to analysts, CME now holds the largest share of Bitcoin futures open interest, surpassing the previously dominant Binance. This change reflects a shift towards traditional derivatives markets in the cryptocurrency landscape.

Open interest is a crucial concept in futures and options markets as it measures the total number of outstanding contracts held by traders at any given time. This metric is determined by the difference between the number of contracts held by buyers and sellers, showcasing overall market activity.

James Seyffart, an ETF research analyst at Bloomberg Intelligence, questioned whether CME’s growing Bitcoin futures open interest would address the historical concerns of the United States Securities and Exchange Commission (SEC) regarding market depth and potential manipulation. This issue has been a significant hurdle in the approval of spot Bitcoin ETF applications, as the SEC has deemed filings inadequate due to market-related omissions.

In response to these concerns, the Chicago Board Options Exchange (CBOE) resubmitted a proposal for Bitcoin spot ETFs and entered into a surveillance-sharing agreement with Coinbase, a major U.S.-based Bitcoin trading platform. This move aims to address the SEC’s apprehensions by ensuring robust monitoring and fraud prevention measures. CBOE’s efforts to collaborate with Coinbase and other regulatory measures are seen as crucial steps towards gaining approval for Bitcoin ETFs in the U.S. market.

Analysts and market observers anticipate that these developments in Bitcoin futures and ETF approvals will have a significant impact on the cryptocurrency market, marking a pivotal moment in its evolution.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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