In a recent records on Twitter CME Group – one of the first companies that started to offer futures trading for bitcoin – it is reported that the average daily trading volume grew by 93%, and the total volume of open positions exceeded 2 400 contracts. This shows an improvement of 58% compared to the first quarter of this year.
Since the establishment of futures options based on bitcoin in December 2017, when Global Cboe and CME Group was authorized to offer these investment products, opinions as to their success has been mixed.
The trading of futures products based on bitcoin are faced with the same problems as the cryptocurrency markets: the hesitation of institutional investors, reducing price and market capitalization and global uncertainties in regulation.
However, despite the dynamics of the cryptocurrency markets in General, futures on the basis of bitcoin demonstrates the liquidity and the interest from buyers.
July 20, CME Group tweeted the comparison of the first and second quarters of this year, which demonstrates substantial growth in the second quarter.
In a press release dated July 15, 2018, CME Group reported a total international average daily volume of contracts in $4.2 million in the second quarter of 2018 is 13% more than in the second quarter of 2017. This suggests that futures-based bitcoin continues to occupy a small fraction of the traditional investment markets, however, continue to grow.
Cboe Global, which first offered futures on bitcoin, is a U.S. option exchange. Historically, that the Cboe total trading volume higher than that of CME Group. According to the daily market statistics Cboe, 20 July 2018, its volume of open positions on futures based on bitcoin was 4 416, while trading volume reached 5 170. 25 APR 2018 Cboe has recorded a record 18 000 contracts.
Cboe also expects its new initiative – the first joint ETF bitcoin, will receive the approval of the Commission on securities and exchange Commission (SEC). A positive SEC decision likely to significantly impact the cryptocurrency markets that will be created an additional product for institutional investors. It now could affect the trading volume of CME Group.
Futures on cryptocurrency really start to influence all spheres of traditional financial markets. In June came the information that rating agencies can downgrade the status of the banks involved in the clearing of futures on bitcoin, if the trading volume for these products will continue to grow. These agencies assign ratings to banks, reflecting their credit quality and influencing access to financing. Banks with low ratings may face a more complex process of financing or the need to comply with more stringent requirements.