CME Report: BTC Futures Trading Keeps Growing in Q3, Average Daily Volume up 41% Over Q2

Bitcoin futures trading at the CME has continued to grow in Q3, with average daily trading volume up 41% over Q2.

Bitcoin (BTC) futures trading at the Chicago Mercantile Exchange (CME) has continued to grow in Q3, the U.S.-based exchange reported in a tweet Wednesday, Oct. 17.

The CME has revealed that the average daily trading volume (ADV) of Bitcoin futures has increased by 41 percent in Q3 over Q2, while open interest (OI) — or the number of open contracts on Bitcoin futures — has risen by 19 percent in the third quarter.

CME Bitcoin Futures ADV and OI in Q1, Q2, and Q3 2018. Source: CMEGroup

Compared to the results of the second quarter over the first quarter, the trading dynamics have now been growing at a slower pace than in Q3. On July 20, the CME reported that Bitcoin futures trading in Q2 had seen a large increase, with ADV and OI up 93 and 58 percent over Q1, respectively.

CME Group is one of the biggest global exchanges and the largest options and futures contracts OI of any futures exchange in the world. The company had also launched Bitcoin futures trading on Dec. 17, 2017, shortly after the launch of BTC futures by the Chicago Board Options Exchange (CBOE) on Dec. 10.

In early October, crypto analyst and host of CNBC’s show Cryptotrader Ran Neu-ner had predicted that Bitcoin price is “about to explode” in the wake of the upcoming decision on several Bitcoin Exchange-Traded Fund (ETF) applications by the U.S. Security and Exchange Commission’s (SEC).

In his prediction, Neuner compared ETFs with Bitcoin futures, claiming that the expectation of BTC futures contracts allegedly made the major cryptocurrency rally last year from “$6,691 (Nov. 11) to $20,000 (Dec .17).”

Recently, Bloomberg reported that the CME was not planning to introduce futures on any cryptocurrencies other than Bitcoin in the near future. Terry Duffy, chief executive officer of CME, had reportedly revealed that the company should first work on the approach to Bitcoin futures, since it “might have been the most controversial launch of a product.”

Earlier this year, the Federal Reserve Bank of San Francisco alleged that a sharp decline in the  crypto markets in 2018 had been caused by the Bitcoin futures launch. The bank stated that it considered that the “subsequent fall in the price” after BTC futures trading did not appear to be a “coincidence.”

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JPMorgan Co-President Jerry Pinto: Cryptocurrency “Will Play a Role” in Future

Bitcoin futures remain on the radar at JPMorgan, co-president Jerry Pinto has confirmed.

JPMorgan co-president Jerry Pinto confirmed the bank was “looking into” the Bitcoin space May 16, saying cryptocurrency “will play a role” in the future.

Speaking to CNBC over two interviews, Pinto, who could be in line to succeed CEO Jamie Dimon, said that JPMorgan is able to trade Bitcoin futures but has not yet opted to do so.

“We are looking into that space. I have no doubt that in one way or another, the technology will play a role,” he responded when asked about trading Bitcoin-based products.

“If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No.”

Pinto’s neutral stance continues the investment banking giant’s somewhat mixed signals about Bitcoin in 2018.

Despite banning customers from purchasing cryptocurrency using its credit cards, senior executives – including the once infamously bearish Dimon – have variously spoken out about the beneficial aspects of both Bitcoin and blockchain technology.

Pinto, too, sees the future of the economy incorporating aspects which were born with the mainstream entry of cryptocurrency.

“The tokenization of the economy, for me, is real,” he continued.

“Cryptocurrencies are real but not in the current form.”

JPMorgan is working on blockchain integration, Cointelegraph reported earlier this month, filing a patent for real-time p2p interbank transfers using the technology.

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