CME Group Posts 17% Loss in Net Income During Q1 2019, Earns Nearly $500 Million
The cryptocurrency industry has been working to establish mainstream adoption amongst institutional investors for quite some time, and there have been many companies to arise in the process.
CME Group is one of those organizations, attempting to help the public to gain access to various crypto products, like the Bitcoin ETF that they are working to get approved. However, the attention on this platform right now is for the recent release of the Q1 report, which reveals a drop in their earnings, according to reports from Wall Street Journal.
The loss of net income is primarily credited to the severe volatility that the crypto market experienced. According to the report, the total income went down to $496.9 million, though they were previously at $598.9 million in the Q4 2018. CME shares also saw a drop of 4.9%. In the report, the company states that the decrease can be credited to the increased spending that CME Group performed in the last quarter.
CME recently had to assure investors that there are no changes in the proposals that they made for the Bitcoin futures contract. After CBOE had announced the reconsideration of their futures project, doubt started rising amongst the community of CME. To reassure investors, CME released a statement that said,
“CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading.”
The platform added that they are not listing any XBT futures contracts for trading right now.
The better performance of CME Group, in comparison with CBOE, has been to the different approach that they take, along with how they handle the product. The CEO of Level Trading Field, an exchange for crypto asset derivatives, called the interactions with these two platforms “expensive.” However, they added that users will not see any new cost if they’ve had experience with other products on the exchange.
Still, without that former experience, CEO Lanre Sarumi added, “if not, you must pay for connectivity, software license, market data, cross-connects, etc. – All that just to trade one new product?
Bitcoin’s price is $44,699.66 BTC/USD exchange rate today. The real-time BTC market cap of $832.35 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $22.96 Billion and live coin value change of BTC -11.44 in the last 24 hours.