CME Ousts Binance as Largest Bitcoin Futures Exchange, Indicating Growing Demand From Institutional Traders
The regulated derivatives marketplace Chicago Mercantile Exchange (CME) has dethroned Binance as the largest Bitcoin ( BTC) futures exchange.
The shift marks the first time in two years that CME has claimed the top spot, indicating a surge in demand from institutional traders.
According to data from CoinGlass, CME now ranks first among futures and perpetual futures exchanges, boasting an open interest (OI) of approximately $4.07 billion.
This represents a 4% increase in the past 24 hours and captures a significant 24.7% market share.
In contrast, Binance’s OI stood at $3.8 billion, experiencing a decline of 7.8% during the same period.
While CME offers trading in traditional futures contracts with predetermined expiry dates, Binance, and other exchanges provide both conventional futures and perpetual contracts with no expiry.
The reshuffling of rankings occurred amidst a major leverage flush out in the crypto market, driven by wild price swings.
The volatility resulted in a $2 billion drop in aggregate Bitcoin open interest, which previously stood at $12 billion.
Notably, the decline had a more pronounced impact on Binance traders compared to participants in the CME market.
Bitcoin experienced a surge to an 18-month high of nearly $38,000, followed by a sharp retracement towards $36,000, after Blackrock registered the iShares Ethereum Trust in Delaware.
Notably, there was a similar pattern when BlackRock filed for a spot BTC exchange-traded fund (ETF) in June.
CME’s gradual ascent to the top position throughout this year underscores the growing demand from institutional market participants seeking to trade the largest and most established cryptocurrency.
A research paper published by Bitwise Asset Management in 2020 revealed that
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