CME Vs. Binance: The Battle For Bitcoin Futures Supremacy
The Chicago Mercantile Exchange (CME), a regulated entity, has emerged as the leading exchange for Bitcoin BTC/USD futures, surpassing Binance BNB/USD for the first time in two years.
This shift is significant as the cryptocurrency sector continues to evolve, a topic that will be discussed at Benzinga’s Future of Digital Assets conference on Nov. 14.
According to CoinGlass data, CME now leads in both futures and perpetual futures exchanges, with an open interest (OI) of approximately $4.07 billion.
This figure gives CME a 24.7% share in the market, while Binance’s OI fell to $3.8 billion.
CME specializes in traditional futures with set expiration dates, unlike Binance, which offers conventional futures and perpetual contracts.
The shift in rankings came amid significant volatility in the crypto market, including a reduction in the aggregate Bitcoin open interest from an initial $12 billion.
This market activity coincided with Bitcoin’s surge to an 18-month high near $38,000, followed by a slight retracement.
CME’s ascendancy in 2023 highlights the growing institutional interest in trading Bitcoin.
A 2020 report by Bitwise Asset Management indicated that CME’s Bitcoin futures market has a significant influence over the spot market.
David Lawant, head of research at FalconX, stated that CME’s gains intensified over the past few weeks as market excitement around BTC spot ETF applications soared.
He also highlighted that CME’s user base, predominantly large traditional financial institutions, reflects the growing institutional enthusiasm for cryptocurrencies.
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