CME’s Open Interest Skyrockets to $3.54 Billion, Earning Second Place Behind Binance 

The post CME’s Open Interest Skyrockets to $3.54 Billion, Earning Second Place Behind Binance  appeared first on Coinpedia Fintech News

CME’s notional open interest (OI) has surged to $3.54 billion, making it the second-highest among exchanges that offer trading in both standard Bitcoin and perpetual futures. This significant increase in open interest positions CME in a prime position after Binance. 

CME Nears the Top with $3.54 Billion In OI

The regulated Chicago Mercantile Exchange (CME) is making significant strides to secure its position among the leading Bitcoin (BTC) futures and perpetual futures exchanges, echoing the early stages of the 2020-21 bull market

CME’s notional open interest (OI) currently stands at $3.54 billion, which moves it to the second spot among Bitcoin futures exchanges. Before this, CME was in the fourth position among Bitcoin futures exchanges. 

Meanwhile, Binance a prominent crypto exchange is still in the top spot, with a value of $3.83 billion, which is 8% more than what CME has. Analysts are divided on whether CME’s rise is primarily due to increased institutional buying or if there are other factors at play.

Reason Behind CME’s Surge

Apparently, some people think that CME is going up because big investors are buying more. In the last month, Bitcoin’s price went up by 27% because of problems in the world and more people wanting to buy Bitcoin.

This @Glassnode chart only highlights on-chain #Bitcoin trading activity, but it misses the big institutional action happening off-chain on the BTC futures markets.

CME BTC futures OI just touched 100k BTC ($3.4 Billion USD) with a 25% market share, rapidly approaching Binance… https://t.co/opZ7wJEOFg pic.twitter.com/SOj577riFz

— Leon Waidmann | On-Chain Insights (@LeonWaidmann) October 24, 2023

Small investors have also played a significant role in this surge, as evidenced by the uptick in futures-based ETFs. For instance, the ProShares ETF, a leading Bitcoin futures-based ETF, has seen a remarkable 420% increase in its value, reaching $340 million in just the last five days. This ETF mostly uses CME Bitcoin futures.

However, André Dragosch, head of research at Deutsche Digital Assets, offers an alternative perspective. According to Dragosch, CME’s rise is linked to the unwinding of bearish bets on offshore exchanges.

“CME’s share in $BTC futures OI might have increased relative to other exchanges, but the aggregate amount of BTC futures & perps OI has not increased in BTC terms, this means that people wanting to buy Bitcoin futures is not the main reason why CME is doing better.

How CME Outpacing Binance 

In a previous report from Coinpedia, CME’s Bitcoin futures value has gone past 100,000 BTC for the first time. This growth in OI coincides with a substantial reduction in offshore perpetual open interest.

Meanwhile, Binance saw its value go down by 26,735 BTC, while CME’s value went up by 4,380 BTC. This made CME have 25% of the market, which is the most it’s ever had. It’s getting closer to Binance (Perpetuals + Futures).

At the same time, the price of Bitcoin for one month in the future has gone up by 13%, which is more than Ethereum. This shows that more people want Bitcoin futures, especially the big investors.