According to foreign media CoinGape reportsLast Saturday, BitMex, the leading derivatives exchange, ushered in the lowest trading day. On this day, the trading volume of Bitcoin futures on its platform was only 948 million US dollars.
BitMex is one of the largest futures exchanges in the world, gathering a large number of retail traders. In contrast, the one-hour trading volume of the new star Binance Futures Exchange has reached 16,000 BTC, 24 hours trading The amount exceeded 30,500 BTC, worth over 250 million US dollars. This figure is also said to exceed Binance’s 24-hour spot trading volume (approximately $220 million).
When BitMex is facing a crisis of sluggish trading volume, the share of the futures market is also quietly changing.
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ICE Exec Says: Institutional Interest in Bitcoin Futures Is Soaring
According to reports, on October 9, the trading volume of Bitcoin futures on the Bakkt platform of the Intercontinental Exchange (ICE) soared to 224, a year-on-year increase of 796%. .
That seems to be turning around now, and at a relatively healthy pace.
For the bitcoin futures trading market,ICE Vice President Jennifer Ilkiw commented in an interview with Edge Markets: More and more institutional investors are interested in Bitcoin futures trading.
Jennifer Ilkiw said that because existing exchanges are not regulated, risk management procedures and comprehensive market supervision and supervision systems, and even face problems such as spot market manipulation, institutional investors cannot conduct digital currency transactions on existing exchanges.
She said bluntly: "There are a lot of high-frequency traders who are interested in it (bitcoin futures), as well as institutional fund managers and brokers, calling us and saying they want to trade bitcoin futures."
The lack of institutional entry channels is the main reason why ICE established Bakkt. In addition, Bakkt is also a major move to deal with the future trends of digital assets in the future. Under Bakkt's plan, Bakkt provides futures and options trading, ICE is responsible for settlement and delivery, and institutional investors can enter the market smoothly.
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CME: Bitcoin futures attract interest from big investors
The Chicago Mercantile Exchange (CME) is another regular player in the digital currency derivatives trading market. The Chicago Mercantile Exchange launched its own bitcoin futures product in 2017.
Although CME is currently facing new competition from the new player Bakkt, it also feels the enthusiasm of institutional investors in the third quarter data.
CME’s data for the third quarter shows that client interest in bitcoin futures remains strong. It is understood that CME's daily open interest exceeds 46,000 contracts, an increase of 61% over the same period last year (the third quarter of 2018).
According to Coindesk, CME said that in the third quarter, the company’s bitcoin futures contract became more and more popular, and the 61% increase was due to the growing demand from institutional investors.
The data in the CME statement shows that its current open interest is 4,629 contracts, compared with 2,873 in the third quarter of 2018. Despite a 25 percent drop in bitcoin prices in the third quarter, open interest in CME contracts fell just 1 percent from the second quarter, according to CoinDesk.
Currently, CME’s average daily contract volume is 5,534, which is equivalent to 27,670 bitcoins, or $289 million, according to transaction data. Of course, this figure also increased by 10% compared with the same period last year.
CME also summarized the changes in institutional funds on the market: "The flow of institutional funds remains strong, with 454 new accounts, compared with only 231 new accounts in the same period last year."
The data also showed that in the third quarter, about 50 percent of CME’s bitcoin futures volume came from outside the United States, with 26 percent coming from the Asia-Pacific region and 21 percent coming from Europe and the Middle East, according to the exchange.
With the launch and promotion of various compliant products, everyone hopes to bet on the track of serving institutional investors. Even if large institutional investors do not respond quickly enough and are not All in in a short period of time, various data are showing that institutional investors Investors have indeed shown interest in the digital currency market. From recovery to rise, the future can be expected.
