Chicago Mercantile Exchange (CME) Became World’s Largest BTC Futures Platform

October 25, 2021

Chicago Mercantile Exchange (CME) Became World’s Largest BTC Futures Platform

The Chicago Mercantile Exchange (CME) has replaced Binance as the world’s greatest bitcoin futures stage, on account of the solid investor hunger for the as of late dispatched ProShares Bitcoin Strategy ETF. As of composing, the CME represents 22% or $5.68 billion of the total global futures open interest of $25.7 billion, while Binance is contributing $5.66 billion to the overall count.

The measure of money secured in the CME-based futures contracts has significantly increased for this present month, with more than $1.5 billion streaming into the market after ProShares’ bitcoin ETF went live on Tuesday. Dispatched under the ticket BITO on the New York Stock Exchange, the ETF has amassed $1.2 billion worth of resources in the initial three days and could before long hit the CME’s position limits.

CME Allows an Individual Entity to Claim Limit of 2,000 Contracts

The CME permits a solitary entity to claim a limit of 2,000 contracts in the front-month futures while capping the general positions across various maturities at 5,000 contracts. ProShares’ fund additionally gives off an impression of being near hitting the cutoff in the October expiry and may keep on gobbling up longer-length futures.
That would open the fund to a huge following error the contrast between bitcoin’s exhibition and actual returns from the fund. That is on the grounds that longer-length futures contracts exchange at an impressive premium to the spot cost. The circumstance is relied upon to ease as more ETFs go live, and the CME raises covers on most extreme positions a solitary entity can hold.

The CME as of late declared that beginning from November, as far as possible for the front-month bitcoin futures, options on bitcoin futures, and micro bitcoin futures will be raised to 4,000 contracts.

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