CME Group is reporting a record-breaking start to 2019 for its futures product tied to bitcoin –theblockcrypto.com
Yesterday CME Bitcoin futures set a new record with 18,338 contracts traded, which is equivalent to 91,690 bitcoin or $360mil.🔥— Eugene Ng ⚡️ (@Eug_Ng) 21 de fevereiro de 2019
“Increased volumes may be due to gradually rising institutional interest”
Who says institutions are not coming? They’re coming for our Bitcoin! 🚀
CME Group, the Chicago-based derivatives market, has seen its future tied to bitcoin take off during the first quarter of 2019, according to an internal email and as it was reported by theblockcrypto.com
The firm first rolled out its future, which allows companies to bet on the future price of the crypto asset, in December 2017. As per the email reviewed by The Block, a CME representative wrote that Feb. 19 marked a new record for the firm’s bitcoin futures contract.
“(Feb 19th) set a new record with 18,338 contracts traded,” the note said. “This is equivalent to 91,690 bitcoin or $360MN.”
This beats the last record set on Nov. 20 2018. “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,” the note said.
Open interest grew by 19.5% compared to last quarter and 88.6% since the beginning of the year as reported xbt.net
In addition, theblockcrypto.com, said that the note mentioned specific numbers about the firm’s clients. Since launch, the firm has had over 2,100 accounts trade the futures contract and 30 unique firms have cleared it. Interest from institutions has picked up as well.
“Institutional interest has gradually risen and the number of LOIHs (Large Open Interest Holders) has been holding steady around 43 holders since November,” according to the email. “A LOIH is an entity that holds at least 25 BTC contracts.”
CME Bitcoin futures ADV and open interest on the rise – xbt.net
According to the results, the CME’s average daily volume reached 5,053 contracts in the last quarter. The increase rose from 3,577 contracts in Q2, representing a jump of about 41 percent.
Compared to the first quarter, which had 1,854 contracts, the third quarter figures represent an increase of approximately 173 percent.
Each of the average daily volumes of 5,053 contracts was an equivalent of 5 BTC, totaling to a staggering 25,265 BTC in volume for every session.
The results also show that open interest in CME’s derivatives market spiked in the previous quarter. Open interest is a representation of the total number of unsettled contracts held by those trading in the market. According to the CME graph, these figures increased by about 19 percent, from 2,405 in Q2 to 2,873 in Q3.
CBOE showing the opposite trend –
Data from the CBOE show that its ADV of its XBT Bitcoin Futures dropped by 19.9% and its end of quarter OI by 28.67% compared to Q2. ADV and OI have dropped by 41.9% and 34.4% since the begging of the year respectively.
It is noteworthy that XBT.net, during its analysis, observed that Cboe had some outlier days (exceptionally high ADV) during Q1, which may have skewed the data upwards.