Chicago Mercantile Exchange (CME) daily average bitcoin futures trading up to $ 370 million

As CME Group Managing Director Tim McCourt noted, the activity of traders has increased significantly compared to August last year. “Since the …

The Chicago Mercantile Exchange (CME) reported record daily trading volume of bitcoin futures in 2019, indicating a renewed interest in the first cryptocurrency from investors, according to Forbes.

As CME Group Managing Director Tim McCourt noted, the activity of traders has increased significantly compared to August last year.

“Since the beginning of the year, an average of 7,237 bitcoin futures contracts have been signed daily, up 132% on the same period last year,” he said.

The average daily trading volumes of bitcoin futures at the same time amounted to $370 million.

“This is a great time for both bitcoin futures and cryptocurrency assets in general. Investor interest in cryptocurrency is high, and interest in the wider use of cryptocurrencies and blockchain technology is also growing. It will be interesting to see how this new market will continue to grow,” McCourt said.

According to him, the CME Group’s main focus is on the educational aspect and providing customers with the tools that they may need to make informed strategic decisions.

Returning to the figures, Tim McCourt recalled that May 2019 was the most successful month for the bitcoin futures market on the CME in the history of the instrument. At that time, an average of 13,600 contracts per day was awarded, which corresponded to a nominal amount of $515 million or 68,000 BTC.

The absolute record was recorded on May 13, when 33,677 contracts totaling 168,000 BTC ($1.3 billion) were signed.

“Our role is to help market participants manage risk regardless of whether the price of bitcoin goes up or down. At the moment, CME Group is pleased with the growth of bitcoin futures,” McCourt added.

Recall, in September it is expected to launch trading bitcoin futures on the Bakkt platform, contracts for which, unlike CME, will be with the physical supply of the asset.

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Miu Lin

Miu is a journalism major and has been writing as a business journalist for various dailies before joining OBN. She currently writes about blockchain, cryptocurrencies and business news.

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CME Group Says It’s Gauging Client Interest on Ethereum Futures After Index Launch

The US-based derivatives marketplace is planning to estimate user demand for ethereum futures product prior to its future launch on the platform.

The exchange operator, CME Group, has unveiled it is now going to review customer demand for ethereum futures contracts, following the launch of a daily benchmark value and a pricing index for ether.

The tracking prices for the second largest digital currency were published by the exchange on Monday. They are based on data gathered from leading crypto platforms Kraken and Bitstamp and are calculated by the UK cryptocurrency derivatives exchange Crypto Facilities.

According to Tim McCourt, CME’s head of equity products, the company wants to see whether there is enough client interest to launch the new product and doesn’t have exact plans yet.

“We’ll continue to gauge with them to ascertain the demand for futures,” McCourt told Bloomberg during an interview at an industry conference in New York. “There are no plans at the exchange to launch one currently,” he added.

The exchange, McCourt noted, has detected there is obvious customer demand for physically-settled bitcoin futures contracts, as well as for the cash-settled ones offered by CME Group and CBOE.

“There’s a clear demand for it in the market; people would welcome that innovation,” McCourt said. “With physical delivery you have to figure out what to do with the Bitcoin; are you going the custody route, are you going the private key route, those are very interesting questions and we’re looking forward to some of those solutions availing themselves in the market, but right now the community is best served by a financial contract.”

CME Group launched bitcoin futures product in December, 2017, a year after creating a bitcoin price index and a reference rate. Although the demand for the product had been lower than some anticipated, the exchange expects the growth of the trading volume of ethereum futures this time.

As McCourt noted, he doesn’t attribute the cryptocurrency decrease to the CME and CBOE’s bitcoin futures offering, noting the trading volume was too small to trigger the decline. “If you look at the notional that trades, it’s tough to say that futures were responsible for that selloff given the relatively small percentage contribution to Bitcoin trading,” he said.

Just a few days ago, another cryptocurrency trading platform Crypto Facilities started offering ethereum futures contracts currently regulated by the Financial Conduct Authority (FCA). With a new tool, investors will be able to broaden investment opportunities, effectively manage their risks and contributing to the market liquidity. The exchange already offers its customers the ability to trade futures for Bitcoin and trade Ripple’s XRP tokens.

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CME Group to Gauge Client Interest for Ethereum Futures Contracts

The Chicago-based derivatives trading exchange CME Group has recently revealed it’s planning on gauging user interest for an Ethereum futures …

The Chicago-based derivatives trading exchange CME Group has recently revealed it’s planning on gauging user interest for an Ethereum futures product it could launch in the future, after launching a price index and benchmark for the world’s second-largest cryptocurrency.

According to Bloomberg, on the sidelines of an industry conference in New York, the exchange’s head of equity products Tim McCourt revealed that the company is looking to understand whether there’s user demand for such a product, although “there are no plans at the exchange to launch one currently.”

The company has recently unveiled its new Ether-Dollar Reference Rate, along with its Ether-Dollar Real Time Index, both calculated by UK cryptocurrency trading platform Crypto Facilities, which uses transactions and order book activity from Kraken and Bitstamp for the indexes. As covered, Crypto Facilities has already launched Ethereum futures contracts.

According to CryptoCompare data bitcoin, the flagship cryptocurrency, fell from a mid-December all-time high of over $19,200 to a low of about $6,800 this year. At press time, the cryptocurrency is trading at $8,315.

CME dismissed that Bitcoin futures trading by both CME and Cboe Global Markets was responsible for the cryptocurrency market decline, as McCourt claimed the trading volume was too small for that to be the case. He said:

“If you look at the notional that trades, it’s tough to say that futures were responsible for that selloff given the relatively small percentage contribution to Bitcoin trading.”

Tim McCourt

McCourt further revealed that CME found there was “clear demand” for physically-settled Bitcoin futures, in addition to CME and Cboe’s cash-settled contracts. Being physically settled means these would be delivered in the asset being traded, which in this case would be Bitcoin.

The CME representative claimed that the market’s infrastructure for institutional trading of such a contract isn’t there yet. He stated:

“With physical delivery you have to figure out what to do with the Bitcoin; are you going the custody route, are you going the private key route, those are very interesting questions and we’re looking forward to some of those solutions availing themselves in the market, but right now the community is best served by a financial contract.”

Tim McCourt

While these exchanges analyze the possibility, UK-based crypto exchange Coinfloor has earlier this year revealed it was set to offer physically settled bitcoin futures contracts.

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Ethereum Futures Watch: CME Group Says It’s Gauging Client Interest

Chicago-based derivatives exchange CME Group said that it plans to gauge client interest for an ethereum futures product now that it has launched a …
ethereum futuresethereum futures
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Chicago-based derivatives exchange CME Group said that it plans to gauge client interest for an ethereum futures product now that it has launched a price index and benchmark for ether, the world’s second-largest cryptocurrency.

Speaking with Bloomberg on the sidelines of an industry conference in New York, Tim McCourt, CME’s head of equity products, said that the exchange operator will test the waters to see if there is enough demand to justify the creation of an ethereum futures product, though the firm does not yet currently have plans to list contracts that track the price of ether.

“We’ll continue to gauge with them to ascertain the demand for futures,” he said. “There are no plans at the exchange to launch one currently.”

As CCN reported, CME on Monday unveiled its new benchmark Ether Reference Rate and Ether Real Time Index, each of which provides audited pricing data for ETH/USD trading pairs. Data is aggregated from cryptocurrency exchanges Kraken and Bitstamp and then calculated by UK cryptocurrency derivatives exchange Crypto Facilities.

ethereum futuresethereum futures
CME Group recently launched an ether price benchmark, widely seen as the first step in eventually creating a futures product.

McCourt further said that CME has identified a “clear demand” for physically-settled cryptocurrency futures. At present, both CME and fellow Chicago exchange CBOE offer futures contracts that are tied to the price of bitcoin but are settled in cash — not cryptocurrency — due to various custodial and regulatory concerns. “There’s a clear demand for it in the market; people would welcome that innovation,” he said, adding:

“With physical delivery you have to figure out what to do with the Bitcoin; are you going the custody route, are you going the private key route, those are very interesting questions and we’re looking forward to some of those solutions availing themselves in the market, but right now the community is best served by a financial contract.”

Elsewhere in the interview, McCourt hit back at claims that CME’s bitcoin futures product launch triggered the recent bear market. Noting that bitcoin peaked at an all-time high on Dec. 17 — the same day that CME listed bitcoin futures — researchers at the US Federal Reserve argued that the bear market was the result of traders taking up short positions in futures.

McCourt, though, said that although futures volume has grown considerably since the markets opened, it was far too small in December to be responsible for a full-fledged selloff.

“If you look at the notional that trades, it’s tough to say that futures were responsible for that selloff given the relatively small percentage contribution to Bitcoin trading,” he said.

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CME to Gauge User Interest for Ether Futures After Index Launch

CME Group Inc. will review client demand for Ether futures after launching an index tracking prices of the second-largest cryptocurrency.

CME Group Inc. will review client demand for Ether futures after launching an index tracking prices of the second-largest cryptocurrency.

“We’ll continue to gauge with them to ascertain the demand for futures,” Tim McCourt, CME’s head of equity products, said during an interview Monday at an industry conference in New York. “There are no plans at the exchange to launch one currently.”

CME started publishing the CME CF Ether-Dollar Reference Rate and the CME CF Ether-Dollar Real Time Index on its website Monday. Trading platform Crypto Facilities Ltd. calculates the rates using transactions and order book activity from cryptocurrency exchanges Kraken and Bitstamp.

CME launched the Bitcoin reference rate and index in November 2016 and started offering Bitcoin futures in December. While Bitcoin futures trading volume has been lower than what some expected given the hype around the launch, McCourt said CME is encouraged to see volume rising every month and the tight spread between futures prices and the spot market.

Claims that Bitcoin futures trading on the CME and Cboe Global Markets Inc. led to the decline in the cryptocurrency’s prices are probably off, McCourt said.

“If you look at the notional that trades, it’s tough to say that futures were responsible for that selloff given the relatively small percentage contribution to Bitcoin trading,” he said.

There’s demand for physically-delivered Bitcoin futures in addition to the CME’s and Cboe’s cash-settled ones, but the market infrastructure for institutional trading of such a contract isn’t there yet, he said.

“There’s a clear demand for it in the market; people would welcome that innovation,” McCourt said. “With physical delivery you have to figure out what to do with the Bitcoin; are you going the custody route, are you going the private key route, those are very interesting questions and we’re looking forward to some of those solutions availing themselves in the market, but right now the community is best served by a financial contract.”

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