CME Bitcoin Futures Witness A 61% Spike In Contracts Traded In Q3 2019; Investors Are Coming


The Chicago based exchange, Chicago Mercantile Exchange (CME) released Q3 quarterly reports on trading of Bitcoin futures on Monday, Oct. 14 shows an increase in institutional investment in the assets. Despite BTC’s price drop in the past few weeks extending to the end of Q2, customer interest in cash settled CME BTC futures remained strong in Q3.

The total daily average number of BTC futures contracts traded stands at 5,534 in Q3, which translates to 27,670 BTC at an approximate valuation of $230 million, using the current rate of $8,400 USD.

Huge Spike in Volume Despite BTC’s Price Pullback

According to the report, a total number of BTC futures in open position went up from 2,873 contracts in Q3 2018 to 4,629 contracts in the same period this year. The huge 61 percent spike in the daily volume traded on outstanding positions is majorly driven by renewed institutional drive for the asset, the report further states.

Despite the price of BTC plummeting from highs of $12,000 USD to a current $8,400 USD price tag, representing a 30% drop, the average daily volume of contracts traded in Q3 rose by 10% from the previous quarter. Notwithstanding, the institutional investment in BTC futures also witnessed a strong quarter according to the exchange.

“Institutional flow remained strong, with 454 new accounts added, compared with 231 added in the third quarter of 2018,” CME said.

Options on futures over physically settled contracts

CME is looking forward to launching its options in early 2020 due to an increase in demand for the product. Speaking on the possible launch of the options, Tim McCourt, CME Group global head of equity index and alternative investment products, said,

“Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk.”

Earlier in the month, Tim confirmed there will be no plans to offer physically settled options despite the growing demand from its customers. Bakkt physically settled Bitcoin futures are yet to reach the expected volumes of trading with an all-time high daily trading volume of 212 contracts recorded last week.

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