Chicago Mercantile Exchange (CME) just tweeted the average daily volume stats for its Bitcoin futures.
The report shows an increase of 93% over the previous quarter.
Bitcoin futures average daily volume in Q2 grew 93% over previous quarter, while open interest surpassed 2,400 contracts, a 58% increase. Learn more about trading #Bitcoin futures: https://t.co/adjWVWXBPQ pic.twitter.com/UQWC3nGGrI
— CMEGroup (@CMEGroup) July 20, 2018
Following Cboe’s lead, CME launched Bitcoin futures on December 17, 2017, shortly before the price of Bitcoin spiked to an all-time-high of nearly $20,000.
Crypto insiders and analysts, including Fundstrat’s Tom Lee, believe that the expirations of Cboe futures has a dramatic impact on the price of Bitcoin.
The Commodity Futures Trading Commission (CFTC), which regulates Bitcoin futures, is reportedly investigating whether market manipulation has been distorting Bitcoin and cryptocurrency prices, and if there’s a correlation between futures contracts and the price of Bitcoin.
The CFTC issued its fourth warning on cryptocurrencies on Tuesday, advising consumers to exercise extreme caution and to do their own due diligence.
The increase in volume for Bitcoin futures signals sustained interest from institutional investors who want exposure to Bitcoin without necessarily holding the asset.
Consumers do not need a digital wallet or need to handle private keys or other complexities related to Bitcoin trading, because the futures are financially-settled with no exchange of Bitcoin. This has made them an attractive product for investors who want to speculate on the market while limiting the risks of holding Bitcoin outright.
Reports that BlackRock, Grayscale, Goldman Sachs, Coinbase, Fidelity, Susquehanna, Nasdaq, NYSE, Steven Cohen and other big investors and institutions are exploring cryptocurrencies, accommodating institutional dollars or cementing major deals to expand their crypto-related businesses, are major indicators that Wall Street money is at play.