Demand for CME Bitcoin Futures is skyrocketing

Demand for BTC futures contracts on the CME is skyrocketing. Is the new Bitcoin ETF behind it?

The derivatives exchange CME (Chicago Mercantile Exchange) is quietly stalking the top of the Bitcoin futures market. According to data from, the volume of open futures contracts is currently 5.4 billion US dollars. The derivatives exchange is already in second place behind Binance and is preparing to overtake pure crypto exchanges.

Recently, the demand for CME Bitcoin Futures had risen sharply. The reason for this is likely to be the newly approved futures-based Bitcoin ETFs, which – we reported – have attracted record demand. After all, the demand for the index funds carries over proportionally to the demand for the futures of which they are the underlying.

What is “Open Interest”?

In contrast to stocks or Bitcoin, futures contracts cannot be measured using the amount in circulation, but rather the volume can be measured using the “open interest”. This means the actual number of futures contracts that are currently being traded on the market. Because, in principle, every futures contract is created out of nothing. All it takes is two parties to agree on the terms of the contract. At its core, a future is nothing more than the promise to trade an asset at a future point in time for a fixed price.

Overall, the open interest in Bitcoin futures paints a clearly bullish picture of the future. As can be seen in the graph, the volume traded at the time of going to press was around 25 billion US dollars, which is on a par with the March level. The cooling of the open interest in the course of the mini bear market from April to September of this year is also visible.

A high volume of futures contracts during price rallies reflects a generally positive sentiment in the market. This statistic is therefore clearly part of the optimistic mood on the market.

For a long time, the futures contracts on Binance were the undisputed leaders in terms of volume. With the introduction of the ProShares Bitcoin ETF, which does not use Bitcoin itself as collateral, but rather the futures contracts of the CME in Chicago, a significant change in the market distribution has been evident since this week. The CME futures are now within striking distance of the Binance Futures in terms of trading volume and should become the front runner if further futures-backed ETFs are approved in the USA,

says BTC-ECHO analyst Stefan Lübeck.

ProShares: Does the ETF span the arc?

The triumphant advance of the CME in terms of Bitcoin futures also shows the growing importance of the traditional financial sector in terms of Bitcoin. Just a few years ago, worlds collided, now they seem to flow further and further into one another. This is impressively demonstrated by the record demand for the ProShares Bitcoin Strategy ETF, the first futures-based Bitcoin ETF in US stock market history. After just two days, investors were trading on the New York Stock Exchange $ BITO valued at over one billion US dollars. This has never happened before in the history of the New York Stock Exchange.

As Bloomberg Meanwhile, ProShares may soon be unable to meet the gigantic demand for its index fund as the futures contracts underlying the securitization are running out. According to research by the business magazine, individual companies cannot sign more than 2,000 contracts for one month at the same time; BITO currently holds 1,900. Ad hoc, $ BITO has probably bought additional contracts that will expire in November. However, this could mean that the ETF can no longer properly reproduce the Bitcoin price trend.

It cannot be denied: Bitcoin is shaking up the financial sector these days.

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