Bitcoin ETF

Bitcoin

David

Edge

Rise

<h4>CME surpasses Binance as leading Bitcoin futures exchange, signaling growing institutional interest in cryptocurrency markets</h4>
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<h2 style="text-align: center;" id="strong-cme-s-rise-to-the-top-strong"><strong>CME’s Rise to the Top</strong></h2>
<p>The Chicago Mercantile Exchange (CME), a regulated derivatives market, has <a href="https://cryptonews.com/news/cme-ousts-binance-as-largest-bitcoin-futures-exchange-indicating-growing-demand-from-institutional-traders.htm" rel="noopener noreferrer nofollow">recently become</a> the number one Bitcoin (BTC) futures exchange. This is a big change, as it replaces Binance, which had been in the lead for two years. According to CoinGlass data, CME now has an open interest (OI) of about $4.07 billion. This is a 4% increase in 24 hours, giving them a 24.7% share of the market. On the other hand, Binance’s OI is at $3.8 billion, down by 7.8%.</p>
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<h2 style="text-align: center;" id="strong-how-did-cme-overtake-binance-strong"><strong>How Did CME Overtake Binance?</strong></h2>
<p>CME’s move to the top spot happened during a time of big price changes in the crypto market. This caused the total Bitcoin open interest to drop by $2 billion from $12 billion. Binance traders felt this drop more than those at CME. Recently, Bitcoin’s price went up to $38,000, an 18-month high. Then it fell to around $36,000. This happened after BlackRock, a big financial company, registered a new Ethereum trust.</p>
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<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-45652" src="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/11/Binance-CME.webp" alt="CME - Binance statistsics
" width="1056" height="631" srcset="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/11/Binance-CME.webp 1056w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/11/Binance-CME-300x179.webp 300w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/11/Binance-CME-1024x612.webp 1024w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/11/Binance-CME-768x459.webp 768w" sizes="(max-width: 1056px) 100vw, 1056px"></p>
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<h2 style="text-align: center;" id="strong-cme-s-competitive-edge-over-binance-strong"><strong>CME’s Competitive Edge Over Binance</strong></h2>
<p>While both CME and Binance offer futures trading, CME’s focus on traditional contracts with set expiry dates sets it apart. This approach aligns more closely with the preferences of institutional investors, who often favor structured and regulated trading environments. This distinction has played a key role in CME’s recent ascent in the Bitcoin futures market.</p>
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<h2 style="text-align: center;" id="strong-why-is-cme-gaining-interest-strong"><strong>Why Is CME Gaining Interest?</strong></h2>
<p>CME’s growth in market share shows more traditional financial institutions want to trade Bitcoin. A 2020 research paper by Bitwise Asset Management found that CME’s Bitcoin futures market often leads the spot market. David Lawant from FalconX, a trading platform, says that CME has been growing in market share all through 2023. He believes this is because more big financial groups are interested in crypto, especially with the excitement around Bitcoin <a href="https://walletinvestor.com/magazinadmin/hong-kong-opens-doors-for-everyday-investors-in-spot-crypto-etfs/" rel="noopener noreferrer nofollow">ETF</a> applications.</p>
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<h2 style="text-align: center;" id="strong-cme-s-position-in-the-market-strong"><strong>CME’s Position in the Market</strong></h2>
<p>CME’s journey to the top has been steady. Just 10 days ago, it was in fourth place. André Dragosch, a research head at Deutsche Digital Assets, mentioned that CME’s rise isn’t because of more people buying long futures. It’s more about people not betting against Bitcoin as much on other exchanges. Although CME now has a bigger share of the BTC futures OI, the total amount of BTC futures and perpetuals OI hasn’t gone up much in BTC terms. Dragosch suggests that the recent rise in Bitcoin prices might be due to a short squeeze and a decrease in overall open interest.</p>
<p>In summary, CME’s new position as the top Bitcoin futures exchange highlights a growing interest from big financial institutions in the crypto market. This change reflects shifts in market dynamics and trader behavior, particularly in light of recent developments in the cryptocurrency landscape.</p>
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CME Surpasses Binance in Bitcoin Futures Market

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