11.02.2023

CME’s Open Interest for Crypto Derivatives Hits Record

11.02.2023
CME’s Open Interest for Crypto Derivatives Hits Record

Trading of Bitcoin and Ethereum futures and options contracts skyrocketed at CME Group in Q3 as institutional investor interest in crypto derivatives continued to grow.

The third quarter set a record average of 15,800 contracts for bitcoin futures, an increase of 11% quarter-over-quarter. The total number of outstanding ether futures and options contracts held by market participants at the end of each trading day, also known as open interest (OI), jumped 22% from the second quarter. Ether options contracts shot up significantly in the third quarter, increasing 75%.

Volatility in the spot cryptocurrency market returned briefly halfway through Q3 with the price of bitcoin and ether falling from their previous annual highs. After two consecutive quarters of rising prices, Q3 saw the prices of the two leading cryptocurrencies by market cap, Bitcoin and Ether, drop 12% and 15%, respectively. Even with these declines, Bitcoin’s price has increased 62% YTD while Ether’s price has gained 39%.

Source: CME

“While volatility and prices have remained mostly range bound resulting in muted trading volumes this year, we continue to see increases in open interest across our Cryptocurrency suite as investors establish or hedge their portfolios. Most notably, our Bitcoin futures reached a record open interest of 20,380 contracts on October 25, equivalent to $3.5 billion in notional exposure,” said Gio Vicioso, Global Head of Cryptocurrency Products at CME Group.

“Bitcoin options have seen a sharp increase in both volume and open interest each rising more than 2 times compared to 2022, whereas Ether futures and options open interest continues to develop. As demonstrated by gains in our OI, market participants view CME Group as a trusted source for risk management,” Vicioso added.

Source: CME

Celebrating women shaping European finance
European Women in Finance Awards deadline is Aug 23
#WomeninFinance #Finance #WIF
Nominate here: https://www.jotform.com/form/250276204100339

As Cboe Data Vantage scales globally, Adam Inzirillo discusses our APAC expansion, plans to launch dedicated cores in Canada and preparation for 24×5 U.S. equities trading, pending regulatory approval – full story in @marketsmedia: https://bit.ly/4kQx3mC

Load More

Related articles

  1. Marex will join GFO-X as a participant & join LCH SA’s DigitalAssetClear as a clearing member.

  2. The SEC approval aligns with the standard practices for similar ETPs.

  3. Chalom led the launch of the iShares Ethereum Trust, the largest Ethereum ETP with over $10bn in assets. 

  4. MiFID II Prompts Banks to Keep Time

    The venue focuses on institutional-grade infrastructure and capital efficiency.

  5. These contracts dominate 90% of global crypto trading volumes.