CME, Binance, and Bybit Captures BitMEX’s 24% Drop in Bitcoin Futures Market Share


Last week was a historical one for Bitcoin as the world’s largest digital asset smashed through $20k and hit a new all-time high above $24,000. Currently, in its price discovery mode, all the pullback BTC is seeing hasn’t taken us to even $21k.

This price action, the largest weekly percentage gain of 22% since April 2019, has pushed the volume on spot exchanges to over $10 billion for the first time in history.

Over $1 billion worth of short positions got liquidated in the futures market over just two days last week. Leveraged traders have also been upping their risk profiles while the premiums to spot continues to decline.

This week, another burst of volatility can be seen in the market as Bitcoin futures contracts for December expire on Friday. Interestingly, the

Bitcoin futures market had some significant changes this year. The popular derivatives platform BitMEX, which commanded 34% of the market share at the beginning of this year, is the biggest loser of 2020. Currently, BitMEX occupies just 10% of the Bitcoin futures market, as per Arcane Research.

This 24% loss in the market share has resulted from the U.S. Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ) charging the exchange and its founders in October with illegally operating a crypto derivatives trading platform. These civil and criminal charges resulted in the exchange losing its edge in the market.

Open interest on BitMEX is currently around $720 million compared to more than $1 billion on OKEx, CME, Binance, and Huobi. BitMEX’s loss resulted in Binance, CME, and Bybit’s gain as all three of them strengthened their position in the market this year.

The biggest gainer is Binance, which recorded an increase of 12% in its market share. With a 9% jump, CME comes behind the leading spot exchange, but this regulated platform has more OI at $1.43 billion compared to Binance $1.38 billion. CME mainly sees increased traction thanks to all the institutional attention towards BTC.

Bybit’s OI is hovering just under the $1 billion mark; the platform now captures 11% of bitcoin futures market share, up from only 6% at the beginning of this year.

Among the losers, Huobi lost 4% of its market share while OKEx’s dropped 8%, although the latter has the highest OI at $1.53 billion, as per data provider Skew.

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