CME Bitcoin Futures Average Daily Volume Up 173% Since Start Of Year

CME revealed via Twitter an increase in its Bitcoin Futures ADV of 41 percent during Q3 compared to last quarter and nearly a 173 percent increase in ADV since the beginning of the year.


Leading Bitcoin (BTC) derivatives provider CME Group continues to see its Bitcoin futures average daily volume (ADV) rise. CME launched the first institutional-grade bitcoin derivatives trading at the end of 2017.

The derivative exchange revealed via Twitter an increase of 41 percent in its ADV during Q3 compared to last quarter and nearly a 173 percent increase in ADV since the beginning of the year.

Open interest grew by 19.5% compared to last quarter and 88.6% since the beginning of the year.

Source: CME Group Tweet 10/17/2018

CME Bitcoin futures ADV and open interest on the rise

According to the results, the CME’s average daily volume reached 5,053 contracts in the last quarter. The increase rose from 3,577 contracts in Q2, representing a jump of about 41 percent.

Compared to the first quarter, which had 1,854 contracts, the third quarter figures represent an increase of approximately 173 percent.

Each of the average daily volumes of 5,053 contracts was an equivalent of 5 BTC, totaling to a staggering 25,265 BTC in volume for every session.

The results also show that open interest in CME’s derivatives market spiked in the previous quarter.

Open interest is a representation of the total number of unsettled contracts held by those trading in the market. According to the CME graph, these figures increased by about 19 percent, from 2,405 in Q2 to 2,873 in Q3.

Asian a driving force

At September’s Consensus in Singapore, CME’s Managing Director and head of equity Tim McCourt said that the firm was seeing a spike in volume, driven mainly by interest from the Asian market.

At the time McCourt noted that 21 percent of the nearly 40 percent of volume generated outside the U.S came from Asia.

Although the CME has reported a substantial increase in trading volume last quarter, the firm’s CEO Terry Duffy maintains that they won’t be listing altcoin products anytime soon. Speaking in July about the possibility of adding new products, Duffy had said:

“Before we get into any other cryptocurrencies, we’re going to see how this one goes, and I think that six to eight months as a listing of bitcoin is not a good enough barometer to decide what your future should be for any other cryptocurrency.”

CBOE showing the opposite trend

The Chicago Board Options Exchange (CBOE) on the other, has shown a steady decline in its volume and open interest since the start of the year.

Source: Cboe Futures Exchange Daily Volume and Open Interest; Analysis

Data from the CBOE show that its ADV of its XBT Bitcoin Futures dropped by 19.9% and its end of quarter OI by 28.67% compared to Q2. ADV and OI have dropped by 41.9% and 34.4% since the begging of the year respectively.

It is noteworthy that, during its analysis, observed that Cboe had some outlier days (exceptionally high ADV) during Q1, which may have skewed the data upwards.

Institutional involvement in Bitcoin

The CME and Cboe futures launched one after the other in December 2017. At the time of their launch, the derivatives were thought of as an opportunity for institutional investors to get into the crypto market (even though the contracts are not settled with physical Bitcoins).

Since then, several legacy financial institutions and other multinationals have explored the possibility of launching bitcoin-related products, including bitcoin exchange-traded fund (ETF).

The Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo recently said that cryptocurrency was here to stay. He acknowledged that the CME and CBOE bitcoin futures market had played a significant role in making digital assets class become “more sustainable.”

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