CME Group Announces 2019 BTC Futures’ Success, Breaks All Prior Sales Records Already for the Year


The cryptocurrency market has been picking up lately, finally starting to see some progress after months and months of the bear market tearing it apart. In an internal email, CME Group revealed that their progress with BTC futures has reached an all-time high.

According to the mail, as of February 19th, the company reached a total said of 18,338 futures contracts on BTC, which is about $360 million. The record before now was a little smaller, posting in November. The email says,

“Q1 2019 is off to a strong start, ADV has improved to 4,630 contracts (23,150 equivalent bitcoin), up ~13% from Q4 2018 while [open interest] rose to 4,076 contracts, an improvement of 21.5% over Q4 2018.”

Ever since the Chicago-based exchange started working, there has been a minimum of 2,000 accounts available for the trading of BTC futures, spread amongst 30 unique institutional clients. With the increase this month, it is clear that these institutional investors are gravitating more to the derivatives product, ultimately bringing more revenue to the crypto industry as a whole. Since the numbers in November, CME has brought in over 40 new clients, which have been called LOIHs (Large Open Interest Holders). Basically, this means an institution that has 25+ futures on Bitcoin.

CME Group is hardly the only platform in the BTC derivatives market. Though they seem to be an innovator in the space, there’s plenty of other players helping to build it up right now, like OKEx, BitMEX, and others. However, the former two platforms are presently the biggest influences in this part of the industry. In a phone interview with The Block on this matter, CEO Thomas Chippas of ErisX said,

“As an ecosystem matures, and as the crypto ecosystem matures, people look for new ways to express a view of the market.”

Commenting on the migration of platforms to crypto derivatives, CoinFLEX’s CEO, Mark Lamb, also spoke with The Block, adding,

“The space has been moving into this direction for a long time… Traders are all about the efficiency of their capital and maximizing the return on equity,” he said. “Futures just make much higher returns more possible as they are really great for arbitrage and other complex strategies.”

The derivatives market has futures, but it also includes crypto options and swaps. Because of the design of this sector, more players keep entering the space as either an investor or a platform to bring in more revenue. Other crypto companies that have plans of releasing derivatives products into the exchange, or creating their own exchanges for derivatives, include Bakkt, SeedCX, and ErisX. While Bakkt is focusing on BTC derivatives, SeedCX and ErisX are working on futures that apply to several crypto coins, like Bitcoin and Ethereum.

Though there have not been any other plans discussed, some news media websites have also stated that Binance is planning an entry into the crypto derivatives market.

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