Open interest in CME bitcoin futures skyrockets 42% in a week, records a new high of $1.47 billion

Quick Take

  • CME Group’s bitcoin futures have hit a new record high of $1.47 billion in terms of open interest.
  • Just last week, the figure was about $1.03 billion. 
  • The crypto derivatives market is growing overall. 
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CME Group's bitcoin futures continue to soar in popularity as more institutional investors flock to the nascent sector. 

Open interest in the futures product has now hit a new record high of $1.47 billion, according to The Block's data dashboard. The figure is 42% higher from just a week ago when it was about $1.03 billion.

The spike in the open interest, or the value of outstanding derivative contracts that are yet to be settled, suggests that more money is flowing in the market, and traders expect a near-term rise in bitcoin's volatility.

CME launched its bitcoin futures in December 2017, and it is currently the only regulated exchange to offer cash-settled bitcoin futures in the U.S.  Thus, it is the most accurate indicator for institutional interest in the market among other crypto futures exchanges.

Coming February, CME is also set to launch ether (ETH) futures. "Building on the success of Bitcoin futures and options, CME Group will add Ether futures to the cryptocurrency risk-management solutions available to trade in February," the firm said last week.

Meanwhile, the total aggregate open interest in the bitcoin futures market currently stands at $8.78 billion, according to The Block's data dashboard.

As for ether (ETH) futures, the total aggregate open interest has hit a new all-time high record at $2.06 billion.

Besides bitcoin and ether futures, the crypto options market is also surging, leading to overall growth in the crypto derivatives space.

The total aggregate open interest in bitcoin options stands at $6.23 billion, while for ether (ETH) options, that figure is at $1.03 billion.

Overall, from the two segments of the crypto derivatives market, futures remain the largest market, followed by options. Meanwhile, bitcoin futures and options remain the most popular products, followed by ether futures and ether options, all in that order. 

Market experts have previously told The Block that the crypto derivatives market is set to increase in size, leaving room for the growth of major platforms in the space.


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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