Although Deribit and crypto exchanges are often the most talked about, CME is fast gaining relevance in Bitcoin options.
BTC derivatives are now on the minds of people and CME Group is doing their best to keep the interest growing.
Skew, a provider of analysis on Bitcoin and Ethereum derivatives, has discovered that CME’s open interest has increased so much and it has remained so for some weeks now.
CME continues to perform excellently
Open interest is the total number of contracts that have not been closed. CME recorded an all-time high in May and since then, it appears there is no going back on its top form.
CME’s open interest yesterday was at $256 million. It needed an extra $3 million to have the same figure as the highest recorded value it has ever had. The results look dramatic considering the fact that CME had about $2 million in open interest when 2019 just began.
Skew says the open interest for Bitcoin options is growing fast in this second quarter.
Nevertheless, CME is yet to attain the same stature as Deribit which is currently the biggest bitcoin derivatives company. Others whose activities influence the market are OKEx and LedgerX.
It is also worthy to mention Bakkt as an important player too although their open interest value of $69,000 is just a fraction of CME’s.
Deriving the maximum benefits from BTC derivatives
With the way BTC derivatives are doing so well, there is hope that this will push Bitcoin further to be the most sought-after cryptocurrency.
According to Coin Metrics, BTC derivatives are the major contributor to the high BTC trading volume. Coin Metrics stated:
“Similar to other asset classes, derivatives markets in Bitcoin are several times larger compared to spot markets.”
Another statement from Coin Metrics goes this way:
“If reported volumes are to be believed, gaining exposure through derivatives markets may be the most efficient path.”