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Bitcoin Futures Trading Volume on CME Hits Record $5 Billion

February 18, 2021 at 9:19 by Mark Stevenson

According to the Skew analytical platform, the daily trading volume of Bitcoin (BTC) futures on the Chicago Mercantile Exchange (CME) has renewed a record high (ATH), exceeding $5 billion. The record was recorded on February 16.

One of the growth catalysts could be the rise of the Bitcoin price above $50,000. Against the background of the dizzying growth of BTC, futures are gaining popularity among investors around the world. The aggregate trading volume of these instruments reached an unprecedented $14 billion.

Source: skew

Bitcoin solidifies its reputation as an investment asset

Previously, the Skew service reported that the CME platform entered the top three in terms of the total volume of BTC futures trading. In first and second place are competing platforms Binance and OKEx, with Binance accounting for nearly half of all global trading volume.

Bitcoin continues its victorious march to new heights, and traders are in a hurry to make money on cryptocurrency derivatives. Futures contracts allow traders to buy an underlying asset at a predetermined price at a specific time in the future.

Thus, futures are used not only as a hedging tool but also as an opportunity to profitably buy cryptocurrency. It’s no surprise that traders flock to derivatives platforms to maximize their returns on their BTC investments.

Earlier on Wednesday, February 17, the leading cryptocurrency recorded a new all-time high at $51,616. At around 13:45 GMT of the same day, Bitcoin crossed the $52,000 mark amid news from the software provider Microstrategy, which has invested more than $1 billion in BTC, plans to issue bonds again, the proceeds of which will be used to buy more BTC.

However, at the time of this writing, the price of one bitcoin is trading at $51,600.

Source: TradingView

BTC and ETH futures will gain popularity

CME launched Ether (ETH) futures trading on February 8. The emergence of new derivatives on ETH has empowered institutional investors and strengthened the second-largest cryptocurrency. At the time of writing, ETH is trading near its all-time high of $1,867.

During the first few days of trading, open interest in ETH futures reached $55 million. Meanwhile, trading volume remained relatively stable at around $35 million.

Source: Skew Analytics, Arcane Research.

At the same time, nearly 200 contracts are traded on CME, most of which expire in February.

Market experts overwhelmingly believe that the launch of Ether futures will have a beneficial effect on the price dynamics of the coin. They are confident that ETH will not repeat the fate of BTC, which has derailed sharply since the launch of futures. This time it seems to be different. The ETH rate is growing, and the bullish sentiment is only getting stronger.

Bitcoin is also not going to slow down: most of the indicators show that the bullish trend has not yet exhausted its potential. And given the strike price of the December option on ETH, it is possible that by the end of 2021 the coin will be worth about $10,000.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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