The Chicago mercantile exchange, popularly known as CME, is now the world’s biggest market for Bitcoin futures. The recent figures of CME Bitcoin futures are similar to figures of a metric associated with institutional investors in bitcoin. The exciting new record was first shared to the public via Twitter on November 27.
Arcane research, a trusted cryptocurrency research and analysis firm, recently shared it on their Twitter page, basing it on Skew Analytics sources and figures. CME’s market value recently doubled over the past month, which has helped it bag its new position.
How CME Overtook OKEx As The Largest Futures Platform
Belncrypto argued on November 18 that the emergence of new institutional investors could be the cause of CME’s increase in Bitcoin futures. It reported that CME open interest exceeded $1 billion, which has never happened before. As a result of the rise in CME’s bitcoin futures, it has overtaken OKEx, the former largest, globally to become the largest futures platform.
The open market can be calculated and estimated by measuring the unsettled amount of outstanding market futures. Unsettled futures contracts are contracts that have not been fully settled, giving the public a view of the platform’s popularity. Analytics have compared the data from both CME and OKEx. The OKEx has a total of $1.07 worth of open interest futures, right behind the new largest, CME, with open interest futures worth a whopping $1.16 billion.
Due to CME’s astonishing increase in value, new investors have shown interest in the cryptocurrency, which recently surged in market value. Future players, Binance and Huobi also cling to the third and fourth most massive platform for Bitcoin futures. Claims show that traditional investors are investing, driving the bull market instead of in 2017, where retail individuals were the cause of the surge.
How Recent Thanksgiving Selloff Affected Value
Arcane sees this as a result of the new entry of institutional investors taking long-term investment in Bitcoin. He believes that their entry caused the recent surge in CME futures contracts value. It is also safe to note that BTCX20’s future contract expired three days ago, and settlements are due on November 30, which is today. Investors are very wary of the volatility of futures trading, especially when very close to its expiry. Contract holders are often seen to change positions once the expiry date emerges.
There was a recent drop in the cryptocurrency to $16,000, but it quickly surged to close to $18,000 on November 27. Some claims linked the recent drop to BtCX20’s expiration and thanksgiving sell-offs around that time. Belncrypto reported two months ago that Willy Woo foresaw that ‘internal adoption’ will decouple Bitcoin from the market.
He also clarified that the internal adoption is as a result of new long-termed investors in the market. Even after the rapid Thanksgiving selloff that made the Bitcoin futures drop, Bitcoin is still attractive to many new investors following its recent ranking on “fear and greed.” The ranking put Bitcoin in a healthy 88th position, not too far from its all-time highest.