The CME Bitcoin Futures options are ready to set a new trading volume record. On June 20, the volumes are expected to reach $22.65 million, equal to 2,392 BTC at current prices. This comes after the record volume registered in May with 1,496 BTC handled by traders using the Chicago Mercantile Exchange (CME).
CME Reach New Records
Traders on the Chicago Mercantile Exchange seem to be very excited about Bitcoin and digital assets as the Bitcoin futures contracts are ready to reach a new volume on June 20 with almost 2,400 BTC. This is according to data provided by Skew, a popular data analytics company in the cryptocurrency market.
The CME's BTC Options product is on track to smash its record-breaking volume of May 2020. pic.twitter.com/kizpPWpjw9
— skew (@skewdotcom) June 16, 2020
In addition to it, the CME BTC options have been handling 142.9 BTC on January 20, 160.5 BTC on February 20, 85.2 BTC on March 2020 and 91.2 on April 20. This shows that in the last month there has been a massive spike in volumes on the CME futures.
Bitcoin futures at the CME allow users to have the option to sell or buy Bitcoin contracts at a specified time and price in the futures. These are not simple futures contracts considering they are not binding for the investors to take a decision on whether to buy or sell the contract.
The volumes registered by the CME are closely related to what larger and traditional investors are doing in the market. Cryptocurrency exchanges do not properly register the volume from institutions considering their decisions could definitely change the course of the market.
One of the reasons related to why these CME Bitcoin options could be growing is related to the current uncertainty around the world in the economic field. During a conversation with CoinDesk, Tim McCourt of the CME suggested that these contracts allow investors to share their views regarding the global financial markets.
The CME Bitcoin futures options service has been launched back on January 13, 2020, and since then they have been expanding over time. The CME has also launched Bitcoin futures contracts for the first time in December 2017 when the cryptocurrency market was reaching $20,000.
Nowadays, there are several retail platforms that are offering users the possibility to trade Bitcoin futures. Two of them include Binance and BitMex. However, they are not suited to meet the exigences of larger and traditional investors in the industry.