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Bitcoin futures open interest at CME reaches 20% of overall BTC futures OI

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Bitcoin futures open interest at CME reaches 20% of overall BTC futures OI

Bitcoin futures open interest at CME reaches 20% of overall BTC futures OI James Van Straten · 3 seconds ago

A further 2,715 BTC were allocated into futures open interest in the past 24 hours

Quick Take

  • Cryptoslate reported on Jan. 24 that the CME exchange saw 84,000 Bitcoin, or $2 billion, allocated in futures contracts in the last 24 hours.
  • A further 2,715 BTC were allocated into futures open interest (OI) in the past 24 hours, now totaling 86,950 BTC.
  • The futures OI in CME accounts for 20% of the futures open interest in all exchanges, the highest since the November 2021 bull run.
  • Total futures OI is 420,000 BTC, or about $9.5 billion.

Why is CME popular?

  • CME is accessible for TradFi funds, as it’s regulated and uses a central counterparty clearing houses (CCPs) clearing model
  • It’s easier for institutional speculators to trade BTC as it’s the same place they would trade commodity futures and, in general, relatively expensive for the average investor.
Futures OI: (Source: Glassnode)
Futures Open Interest: (Source: Glassnode)
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Crypto Futures ETFs Raise More Than $73 Million Ahead Of Hong Kong Launch

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Crypto Futures ETFs Raise More Than $73 Million Ahead Of Hong Kong Launch

Hong Kong’s first crypto-based exchange-traded funds (ETFs) have attracted over $73 million ahead of their debut on the region’s stock exchange. The launch of the two ETFs tracking cryptocurrency futures listed in the United States comes despite the industry’s current troubles.

Hong Kong Debuts Bitcoin and Ether Futures ETFs Amid Crypto Winter

Two ETFs tracking crypto futures raised a total of $73.6 million ahead of their debut on the stock exchange in Hong Kong on Friday, with the larger one raising $53.9 million, according to Reuters. The news agency noted that the launch is in defiance of the ongoing turmoil in the sector.

The funds, offered by CSOP Asset Management, invest in bitcoin (BTC) and ether (ETH) futures listed on the CME exchange in the U.S., the only crypto assets allowed by Hong Kong’s Securities and Futures Commission (SFC) at the moment. Commenting on the development Yi Wang, head of quantitative investment at CSOP, stated:

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Coming after the recent liquidity problems affecting some of the crypto platforms, our two crypto futures ETFs demonstrate that Hong Kong remains open-minded on the development of virtual assets.

This year’s crypto market downturn led to a significant drop in the prices of major cryptocurrencies with the largest coin by capitalization, BTC, losing more than 70% of its value since its all-time high registered a little over a year ago.

The slide in the rates was accompanied by a string of failures in the industry, the latest of which was the collapse of FTX, a leading crypto exchange with global reach, which declared bankruptcy in mid-November amid liquidity issues.

Weeks before its crash, the SFC announced in October its intentions to launch a consultation on whether to allow retail investors to trade cryptocurrencies and ETFs. The watchdog’s initial proposal was to limit participation to professional investors only.

Then, in November, the Commission’s Deputy CEO Julia Leung was quoted as saying that the SFC is “actively looking” to establish a regulatory framework that would allow the trading of crypto futures exchange-traded funds.

“As the ETFs do not invest in physical bitcoin, and are traded on regulated U.S. and Hong Kong exchanges, there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms,” Yi Wang elaborated now.

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Bitcoin, BTC, Crypto, crypto assets, crypto futures, crypto futures ETFs, Cryptocurrencies, Cryptocurrency, debut, ETF, etfs, ETH, ether, Exchange, exchange-traded funds, Futures, Hong Kong, launch, stock exchange

What do you think about Hong Kong’s debut of crypto futures ETFs in the current market? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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MEXC Global Vice President Andrew Weiner Explains The Appeal Of Futures Trading

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MEXC Global Vice President Andrew Weiner Explains The Appeal Of Futures Trading

A 6-year veteran of the crypto industry, Andrew Weiner serves as the Vice President of MEXC Global. As the former executive of RegTech and digital identity pioneer iComplyKYC, he worked with notable brands that include Thomson Reuters, ComplyAdvantage, IBM, Mastercard, Deloitte, and KPMG to deliver innovative solutions to Virtual Asset Service Providers in over 170+ countries.

Andrew recently joined the Bitcoin.com News Podcast to talk about the appeal of futures trading, the importance of liquidity, regulatory challenges and why “the Western market is four-years behind Asia”:

Andrew Weiner, Vice President, MEXC Global

About MEXC

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MEXC is the world’s leading cryptocurrency trading platform, providing one-stop cryptocurrency trading services for spot, ETF, futures, Staking, NFT Index, etc.,and serving more than 10 million users worldwide. The core team has a solid background in traditional finance, and has professional financial product logic and technical security guarantees in terms of cryptocurrency products and services. In October 2021, MEXC Global won the title of “Best Cryptocurrency Exchange in Asia”. Currently, it supports the trading of more than 1,700 cryptocurrency, and is the trading platform with the fastest launch speed for new projects and the most tradable categories.

Official website: www.mexc.com

Official Blog: blog.mexc.com

MEXC Global twitter: twitter.com/MEXC_Global

M-Ventures twitter: twitter.com/MVenturesLabs

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The Bitcoin.com News podcast features interviews with the most interesting leaders, founders and investors in the world of Cryptocurrency, Decentralized Finance (DeFi), NFTs and the Metaverse. Follow us on iTunes, Spotify and Google Play.


This is a sponsored podcast. Learn how to reach our audience here. Read disclaimer below.

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Bitcoin.com is the premier source for everything crypto-related. Contact the Media team on [email protected] to talk about press releases, sponsored posts, podcasts and other options.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Report: CME Group To Face Off With FTX After Filing For Futures Commission Merchant Status

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Report: CME Group To Face Off With FTX After Filing For Futures Commission Merchant Status

According to a recent report, the world’s largest derivatives exchange CME Group is looking to register as a direct futures commission merchant (FCM). CME Group’s decision follows the digital currency exchange FTX, as the crypto company applied to become a derivative clearing organization and awaits approval from the U.S. Commodity Futures Trading Commission (CFTC). If CME Group is approved to be an FCM, the company can bypass third-party brokers and offer futures directly on the CME platform.

Derivatives Exchange CME Group Registers for FCM While FTX Awaits CFTC Approval

The world’s largest financial derivatives exchange, CME Group, has reportedly filed paperwork to become a futures commission merchant (FCM), according to a report published by the Wall Street Journal (WSJ). WSJ author Alexander Osipovich explained CME filed the registration in August and Osipovich opines that the company is “taking cue from [the] crypto rival FTX.”

If CME Group’s FCM registration is approved, CME will be able to offer derivatives directly without the need for brokerage houses like TDAmeritrade, Saxo Bank Interactive Brokers, Robomarkets, and Grandcapital. FTX is awaiting approval from the CFTC to become a derivatives clearing organization. Last March, the CFTC opened public comments so it could get insight into FTX’s proposal. In mid-May, CME Group chair and chief executive officer Terry Duffy wrote that the move by FTX could present “market risk.”

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“FTX’s proposal is glaringly deficient and poses [a] significant risk to market stability and market participants,” Duffy opined at the time. “FTX proposes to implement a ‘risk management light’ clearing regime that would significantly increase market risks by potentially removing up to $170 billion of loss-absorbing capital from the cleared derivatives market, eliminating standard credit checks, and destroying risk management incentives by limiting capital requirements and mutualized risk.”

The report written by Osipovich details that the chairman and chief executive of Advantage Futures, Joseph Guinan, says the move could be very dramatic. “I would not expect the CME to go down the path where they compete directly with FCMs for clients,” Guinan remarked. “However, if they did go down this path, that would be a game-changer for the FCM industry and a dramatic concern for every FCM.”

While the CFTC weighs in on the FTX proposal, Osipovich cited Craig Pirrong, a finance professor at the University of Houston when he said that CME’s FCM decision was a response to the FTX plan. “From a philosophical perspective, they would prefer not to do this,” Pirrong said on September 30. “But in the event that the CFTC does approve the FTX model, from a competitive perspective, they may feel that they have to do this.”

Osipovich also published commentary from a CME Group spokesperson who commented on CME’s FCM August filing. “Our commitment to the FCM model and the significant risk management benefits it provides to all industry participants remains unwavering,” the CME Group representative said. In terms of bitcoin (BTC) futures volume, FTX and CME Group have relatively the same amount of bitcoin futures open interest and BTC futures trade volume as well.

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bitcoin futures, CME Group, CME Group CEO, CME Group chair, Craig Pirrong, derivatives, derivatives exchange, derivatives markets, ftx, FTX Exchange, Futures, futures exchange, Grandcapital, Joseph Guinan, Options Exchange, Robomarkets, Saxo Bank Interactive Brokers, TDAmeritrade, Terry Duffy, trading

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What do you think about CME Group going face to face with FTX by applying for a futures commission merchant status? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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