Bitcoin is the Second Most Heavily Traded Asset at the CME, a Sign of the Times to Come?
- “Bitcoin is an asset very actively traded throughout the day,” – economist & trader Alex Kruger
- Biggest bitcoin futures settlement on June 3rd that could potentially impact the price
The institutional interest in Bitcoin continues to grow stronger as evident from the volume registered on global derivatives marketplace CME. On May 28th, 2019, CME released a data sheet that shows the total open interest rate on Bitcoin futures contract at $5,190. This is an increase of around seven percent from the futures published last week and the new ATH in terms of open interest.
Per the report, in terms of volume/open interest ratio, Bitcoin is the second most heavily traded asset at the CME. Volume is the number of contracts traded in a day and open interest is the number of outstanding contracts held (unsettled) at the end of the day. A high ratio point here points toward market participants actively trading intraday.
“Bitcoin is an asset very actively traded throughout the day,”
says economist and crypto trader, Alex Kruger.
Kruger further points out that the average daily volumes of Bitcoin in USD are still rather small when compared to other assets present in the table.
Biggest Bitcoin Futures Settlement that could Potentially Impact the Price
Throughout this year, we saw CME Bitcoin futures volume posting record figures in a corresponding increase in the price of Bitcoin. Just last month we reported that Bitcoin volume traded by BTC futures reached $1.3 billion on May 13, 2019.
Last week on Friday was the expiration of CME bitcoin futures and now on Monday, June 3rd, it would mark what looks like would be the biggest settlement in the history of Bitcoin contracts that could potentially impact the Bitcoin price on the spot market as well.
Recently, we reported how the Bitwise report revealed that regulated Bitcoin futures contract trading has grown to become 48 percent of the spot market since April 2019. This real volume of CME BTC futures is the institutional interest in Bitcoin.
Massive trading volume on CME Bitcoin futures, with 432.5K contracts traded so far in Q2 – and we have 23 trading days left.
CME volumes are authentic and a great proxy for institutional interest. pic.twitter.com/yEQORmUw0A
— Imran Aijazuddin (@I_Aijazuddin) May 28, 2019
Now, with these futures expired, there will be a “temporary gap” that we have seen in the past few weeks resulting in Bitcoin taking a dump and filling that gap.
Just before the weekend, we saw Bitcoin price dropping down below $8,000 but over the weekend, we recovered and went as high as $8,830. At the time of writing, the leading cryptocurrency has been trading at $8,530 with 24-hours loss of 3.60 percent.
Bitcoin is up about 170 percent since hitting the bottom in December 2018 at $3,150 and the long term sentiment is clearly bullish. However, in the short term, we can still see a pullback, depending on how quickly the CME gap gets filled.