CME Bitcoin Futures Volume Spikes, Potential Wall Street Investors Coming Into Crypto
The price of Bitcoin might not be reaching an all time high number for the moment but it looks like institutional investors and Wall Street is finally making its entrance in the market. Recently, Bitcoin futures on CME went up to 6739 contracts, the highest number since CME has introduced this new product at the end of 2017.
The CME Bitcoin Futures are based on the CME CF Bitcoin Reference Rate (BRR). This number is taken from the aggregate of Bitcoin trading activity on the major exchanges during a certain time period, normally 3 and 4 p.m. in the time of London. Each contract is worth 5 Bitcoin.
Using $6600 as the Bitcoin price, this means that the total is $222 million USD in Bitcoin future contracts. This is a huge amount of money, which led many people to believe that this could be institutional investors.
If not institutional investors, it could only a be billionaire making a pump and dump move in order to make such a large movement on CME. This is not something that could be considered normal but it is certainly a possibility to be taken into account when analyzing the situation.
Can This Be a Signal That Wall Street Is Moving On Cryptos?
A lot of analysts believe that this means that Wall Street has finally decided that cryptocurrencies are a good investment. The data is not clear enough to prove that but it means that cryptos are on the rise yet again after its recent downsides.
Over the last few months, cryptos have caught the eye of many Wall Street Hedge Funds. Venrock, for instance, which is the venture capital arm of the Rockefeller Foundation, has signed a recent partnership with Coinfund, a crypto company from Brooklyn.
Also, people from Wall Street have moved to some crypto firms recently. SBI Holdings in Japan is also considering to invest in cryptos and the CME Group has reported that a demand for institutional investors in Asia has been up by 50% during the beginning of 2018.
By seeing all this data, it seems likely that investors from Wall Street will soon start to invest in cryptos (unless the market somehow crashes like many people are keen to believe). Because of this, it might be early to affirm for sure, but the trends are clear to indicate that Wall Street investors will be in this market in the future.