The Chicago Mercantile Exchange (CME), a regulated derivatives exchange that lists Bitcoin (BTC) futures, now ranks second in terms of notional open interest, just behind Binance.
The CME’s open interest reached $3.58 billion on Oct. 30, moving the exchange up two positions from the previous week. Surpassing Bybit and OKX, with $2.6 billion and $1.78 billion in open interest respectively, the CME is now only a few million dollars away from Binance’s $3.9 billion.
The CME offers a standard Bitcoin futures contract valued at five BTC, as well as a micro contract worth a tenth of a Bitcoin. Offshore exchanges primarily focus on perpetual futures, which do not have an expiration date and use the funding rate method to maintain price parity with the market price.
Bitcoin open interest refers to the total number of outstanding Bitcoin futures or options contracts in the market. It measures the amount of money invested in Bitcoin derivatives at any given time and reflects the capital flowing in and out of the market. Increasing open interest suggests a bullish sentiment, while declining open interest indicates bearish sentiment.
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The rise in CME’s open interest not only helped the exchange climb to second place among futures crypto exchanges but also resulted in its cash-settled futures contracts exceeding 100,000 BTC in volume. The growing interest of traders in the Bitcoin futures market has allowed the CME to capture 25% of the market share.
The majority of investment in CME futures comes from standard futures contracts, indicating increasing institutional interest as Bitcoin experienced a significant double-digit surge in October, pushing it to a new one-year high above $35,000.
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