The crypto market is on the bull side, and great things are happening in the space; one of them is the fact that CME Group recorded a daily volume of $1 billion Bitcoin futures.
“CME Bitcoin futures reached an all-time record high of 33.7K contracts on May 13 (168K equivalent bitcoin), up nearly 50% from the last record of 22.5K contracts on April 4. See how market participants are using $BTC to manage uncertainty”
In the crypto space, this is a big feat and according to Jeremy Allaire, the CEO of Circle, which is a vital crypto-firm that controls the crypto-exchange Poloniex and stablecoin USD Coin, the $1 Billion record volume of Bitcoin futures by CME Group indicates the full involvement and interest of institutional investors in the Crypto market.
It is necessary to know that CME Group – together with Chicago Board Options Exchange (CBOE) – became the first provider of BTC futures. On Monday 13th of May, the company recorded an all-time high of 33,700 contracts which is equivalent to 168,000 BTC ($1.35 billion) – a 50 percent high when compared to the previous highs of 22,500 contracts and 112,700 BTC on the 4th of April.
Are Institutional Investors the Main Catalyst For Bitcoin Bull?
It is also necessary to know that last month, the price of BTC increased by 62 percent against USD, at this time crypto-exchanges and also investment vehicles backed by digital assets began to see high record volumes.
On this note, the CEO of a prominent venture capital firm in the crypto space Digital Currency Group: Barry Silbert, stated that investments on Grayscale’s Bitcoin Investment Trust (GBTC) rose to $1.7 billion and hit a record volume of about $141 million.
“ICYMI: $GBTC volume exceeded $141,000,000 today.” Grayscale Investment Trust stated through a tweet on its official Twitter Page.
Bitcoin futures are always used by Grayscale’s GBTC and exchange-traded notes (ETNs) to invest in the crypto-market.
Jeremy Allaire also stated that the increased volume of Bitcoin futures of CME Group and also the request for other investment vehicles really show that institutional investors are committing to the crypto market.
He also added:
“In late 2017, the market rallied hard on the news that the CME would launch BTC futures and herald the institutional adoption of crypto. After the first markets launched in Jan 2018, the adoption as weak, and the market begin to sell off (for many other reasons too). Fast forward to yesterday, and we’ve just seen $1B in futures contracts traded in one day, decisively marking May 13, 2019, as the day that we can say that the institutional market has arrived in crypto.”
It is evident that not only the Bitcoin Futures of CME Group will surge; also Futures from Bakkt are expected to reach a record high that could further increase the interest of institutional investors.
Hence, the CEO of Bakkt Kelly Loeffler stated:
“Customers active in crypto markets — and many still waiting to get in — have had a voice in shaping the design of the initial product offering. As detailed in the ICE Futures U.S. filing with the CFTC today, bitcoin futures will be listed on a federally regulated futures exchange in the coming months.”
A wide range of options, including the fact that they are government-regulated markets that support Bitcoin may have spurred the interest of institutions today, and this had a significant effect on the Bitcoin spike.
Bitcoin Market Price Chart in RealTime