Amid significant price volatility and a leverage flush out in the cryptocurrency market, the Chicago Mercantile Exchange (CME) has overtaken Binance to become the leading Bitcoin futures exchange. CME reported an open interest (OI) of about $4.07 billion on Thursday, a 4% increase in 24 hours, capturing a 24.7% market share.
This shift coincided with a substantial drop in aggregate Bitcoin open interest, falling by $2 billion from $12 billion. Binance traders were more affected, with Binance’s OI dropping to $3.8 billion, a 7.8% decrease in the same period.
These changes occurred alongside dramatic fluctuations in Bitcoin’s price, reaching an 18-month peak of nearly $38,000 but subsequently falling back to $36,000. The price movements followed the registration of “iShares Ethereum Trust” in Delaware, similar to patterns observed when BlackRock applied for a spot BTC exchange-traded fund (ETF) in June.
CME’s steady growth in 2023 reflects increasing institutional demand for Bitcoin futures trading. Experts attribute this surge in market share to growing anticipation around BTC spot ETF applications. The predominance of CME usage by large traditional financial institutions signals a growing interest in cryptocurrency. The growth is also attributed to the unwinding of bearish positions on offshore exchanges, according to Deutsche Digital Assets.