CME Bitcoin Futures Trading Volume Reroutes To The Moon, Up Nearly 1,000% Up Since April 1st
CME Bitcoin Futures Volume Skyrocketed This Month, 950% Up Since April 1st
Bitcoin is back. This is the only conclusion a person can get from seeing the market this week. The latest Bitcoin price rally has made the CME BTC futures rally and increased their volume 950%. This is great news not only for CME but also for the whole Bitcoin market.
On April 4, CME traded the total of $563 million USD worth of Bitcoin futures, a total of 22,542 contracts, each one representing 5 BTC. At the beginning of the month, only 2,162 contracts were made.
Early February 2019 saw the lowest volume ever for contracts, so it is rather surprising to see volumes rising so much (or maybe not, since the whole sentiment around Bitcoin changed a lot this month over the course of a few days).
Mati Greenspan, a senior analyst from eToro, affirmed that the Bitcoin contracts are not really settled on Bitcoin, but on paper, however, they represent an important force in the market, since the top 10 crypto exchanges “only” traded $684 million USD worth of BTC yesterday. These contracts will let the traders speculate on the prices of Bitcoin, which can have unforeseen impacts in the market.
Bakkt Will Come And Change Everything
Since BTC futures are now getting popular again, it should be remembered that the Intercontinental Exchange (ICE) and its new platform Bakkt will follow a very different route. Instead of using paper to settle the contracts, the futures sold by the company will be settled on physically-delivered contracts and the users will receive real Bitcoin later.
Bakkt may be struggling to gets its clearance in order to start up shop, but the company will make a huge splash in the market when it finally arrives.
There is even some competition already, as Coinflex, a platform that was backed by important VC companies like Polychain Capital and the Digital Currency Group has already been launched and it offers basically the same Bakkt would offer.