CME Bitcoin Futures Volumes Spike And Go Up Over 250% In April As Crypto Market Rallies
CME’s Bitcoin Futures Volumes Spike And Go Up By 263% As April Market Rallies
The Bitcoin bull market is here, there is simply no way to deny that. As the price of Bitcoin went up last month, so were the volumes of trading because no one wanted to be left out of the bull run and the market was basically revived last month.
In the futures market, the situation is not slightly different. Many BTC futures went up and performed very well as the prices started to break their $4,200 USD ceiling.
One of the companies which were able to make more profit and rise its volumes during this time was the Chicago Mercantile Exchange (CME). The company saw a really massive increase in its trading volume during this timeframe, seeing its volumes go up 263%, according to CryptoCompare.
The Chicago Board of Options Exchange (CBOE) also saw its volumes going in the month, but they still pale in comparison, though, which certainly happens because the structure of the CME is considerably bigger and they also offer contracts which are more expensive than the other company.
This makes the volume of the futures created by CME to account for around 86% of all the volume in regulated exchanges and shows just how big the dominance of the company is. With its volumes going from $70 million to $256 million USD in a single month, it is obvious that the dominance of the company would end up being strengthened.
While the strength of the company simply cannot be denied, the truth is that there are still some worthy rivals in the market. The Grayscale Investment Group, for instance, was one of the companies that offered another popular institutional product for the investors, the Grayscale Bitcoin Trust.
Last month, the volumes of the company stood around $30 million, though, which is around only 11% of the CME’s volume.
CBOE was able to see an increase of 110% in its volumes, which went from $4.7 million to $10 million USD, however, it is clear that these are still very low volumes when you compare them directly with the volumes from CME.
The success of CME is certainly linked to the beginning of April. On April 2, Bitcoin was able to see its biggest price gain in the whole year, 15%. This culminated into the most active week for CME so far. The price pump was so successful that the volumes went to the moon.
A Great Time For Bakkt To Be Launched
This obviously paints a pretty picture for Bakkt, the upcoming exchange which was created by the Intercontinental Exchange (ICE), which also owns the New York Stock Exchange (NYSE). Since the market is so hot right now and the bull market is starting, the upcoming launch of the platform will most likely be a huge success.
However, at this time, the most important detail which is still lacking in order for Bakkt to be properly successful is that the company would still need to overcome all of its regulatory issues which are plaguing the effectiveness of the company so far.