Bitcoin Futures Register Record Volume From Institutional Buyers
- CME Bitcoin futures reach a new all-time high in May
- Analysts suggest Bitcoin futures price could be correlated to Bitcoin spot prices
Back in May, the Chicago Mercantile Exchange (CME) registered a new trading volume record for Bitcoin (BTC) futures. This shows that there is an increasing interest from financial institutions in the virtual currency. Could Bitcoin become a mature financial asset class?
CME Trading Volumes Reach New Highs In May
Bitcoin has been expanding in the market in the last few years. However, there are several individuals and analysts that claim that the digital currency was not able to attract institutional investors. But this does not seem to apply for Bitcoin’s futures contracts that are provided by the CME. The trading volumes registered by the CME for Bitcoin futures surged in May and reach an all-time high, which shows that there is an interest from institutions for the virtual currency.
At the same time, the crypto analyst Joe McCann wrote on Twitter that Bitcoin futures could be used to forecast Bitcoin’s spot price. He shared some images in which it is possible to see that the spot price followed the trend of the futures price.
There are different countries that are trying to work on regulations for virtual currencies and blockchain technology. This is why the Financial Action Task Force (FATF) decided to publish some crypto recommendations for 200 countries. These nations can apply these rules that would essentially increase the control crypto platform have over users. Investors will have to provide information about their job, funds and many other things. This is in order to be compliant with the increasingly hard KYC and AML policies.
Currently, Bitcoin is being traded around $8,280 an it has a market capitalization of $147 billion according to CoinMarketCap.