One of the products that are particularly important for the continued growth of the cryptocurrency industry is Bitcoin futures. Derivatives have become one of the crypto-based securities with the largest trading volume.
Key driving force
The Chicago Mercantile Exchange (CME) yesterday disclosed the actual figures about that particular product.Since 2017, the futures contract has been traded on the exchange. One of the executives revealed that the total trading volume of the transaction was Pegged at $100 billion.
Tim McCourt, Global Head of Alternative Investment Products and Group Managing Director of Stock Index, said: “Since its launch in December 2017, the total notional trading volume of CME Bitcoin futures has exceeded US$100 billion.” This shows that it has entered the crypto market, especially the type of money for Bitcoin futures.
In addition, CME Group represents the mainstream financial sector, and this type of transaction volume shows that in the past few years, institutional funds have entered this sector in large quantities. For many years, Encryption expert It has been said that the entry of institutional funds may lead to a substantial increase in the price of Bitcoin, and it remains to be seen how everything will develop in the next few months.
McCourt also stated that the futures contracts involved have undergone significant changes in the past two years. At present, CME Group operates one of the most liquid bitcoin derivatives markets in the world. High liquidity is a sign of a mature market, indicating that the price of securities will now change dramatically if they are traded frequently. Institutions usually look for such securities, and the liquidity in the exchange may eventually lead to such a large number of transactions in the past two years. The Bitcoin futures market is still new, but in the past year or so, it has indeed taken off.
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